The reserves that support the dollar-pegged stablecoin USDC were published today by Circle, the firm behind it.
Circle, the stablecoin issuer, detailed the numerous sources of backing that underpin its stablecoin USDC in a blog post published this morning.
Stablecoins are digital currencies that are tied to the value of a fiat currency, in this case the United States dollar, by the use of corresponding currency-denominated assets kept in segregated accounts by the issuer. The total value of the assets held in these accounts must be equal to (or greater than) the number of stablecoins currently in circulation issued by the issuer of the stablecoins.
Grant Thornton, the company’s accounting firm, wrote a report on Friday that stated that Circle had $22,176,182,251 in its account at the time of the report’s publication. Certified public accountants from Grant Thornton confirmed that the sum corresponded to exactly one dollar for every US dollar coin in circulation.
Approximately $13.4 billion, or more than 60% of the total, is held in bank deposits. Yankee Certificates of Deposits (a type of savings vehicle denominated in dollars), which account for $2.9 billion of the total reserves, and U.S. Treasury securities, which account for $2.7 billion, account for a quarter of the total reserves. Commercial paper and corporate bonds account for the remaining 14 percent of total investment.
In a blog post published today, Circle described the three pillars of trust, transparency, and accountability that the USDC ecosystem should be built upon.
Due to heightened regulatory scrutiny of cryptocurrencies, the company has committed to maintaining the highest levels of regulatory and prudential norms, which are now in a state of flux.