Circle reveals $55.7 billion worth of cash and treasury reserves after ‘hurricane FUD’

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2022-07-18 00:59:40

The first monthly report has been released by Circle with thorough details on reserves for the US dollar-denominated stablecoin, USDC.

Circle publishes detailed USDC escrow report

Circle released its first monthly report detailing reserves for US dollar-backed stablecoins, showing $55.7 billion in cash and three-month US Treasury securities at the end of June.

In an unaudited report, the fintech company known for its stablecoin pegged to US dollars, Circle said it holds $13.58 billion in cash, stored in regulated US banks. Banks include: Bank of New York Mellon, Citizens Trust Bank, Client Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, Silvergate Bank and Bancorp USA.

Circle detailed that there were 55.57 billion USDC fully backed in circulation as of June 30. Also this past June, the company also launched a euro-pegged stablecoin called EUROC. These securities have a weighted average maturity (WAM) of 43.9 days.

In addition, Circle revealed that it is holding $42.12 billion of Treasury securities for 3 months. The list shows 19 securities maturing from July 5, 2022 to September 29, 2022.

“USDC reserves are held only in cash and three-month U.S. Treasuries, held in separate accounts for the benefit of USDC holders and completely separate from Circle operations.”

The company added that it has received third-party endorsements every month since the introduction of USDC in 2018.

A series of Circle blog posts titled “How to settle down”Circle co-founder and CEO Jeremy Allaire has denied rumors circulating on Twitter that USDC is facing collapse.

In a new thread posted on July 14, Allaire said the disclosure of USDC reserves is part of the company’s ongoing efforts to focus on transparency.

“As part of our commitment to increasing transparency and disclosure around USDC, today we publish our first monthly USDC reserve asset breakdown, bond-by-bond. treasury and a list of custodians of cash reserves,” Allaire wrote.

“We are far from perfect and are continuing to do more to provide even more transparency, including obtaining permission from our banking partners to disclose the amount of cash at each institution, as well as progressing to the daily public reporting of reserve assets. We will get there,” Allaire added.

Additionally, the financial institution regulated by the New York State Department of Financial Services, Paxos announced on July 8 that it will begin providing details on the backing reserves for Pax stablecoins. Dollar (USDP) and Binance USD (BUSD) monthly. It offers a second service through a partnership with Binance.

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