The amount of US Treasury notes owned by Circle Reserve Fund continues to increase.
As of November 30, 2022, Circle has $43.4 billion in USDC reserves to support 43.23 billion USDC in circulation. The Circle Reserve Fund, a registered government money market fund completely owned by Circle and managed by BlackRock, held $12.79 billion of these reserves. As of 30 November, the fund’s assets comprised twelve US Treasury notes.
Circle established its Reserve Fund on November 3, and in less than a month, about 29.5% of the stablecoin reserves were transferred to the fund. Since then, according to Blackrock’s filings, “USDC reserves invested in the Circle Reserve Fund have increased to about $28.6 billion, or 65%,”
John Paul Koning, a prominent crypto expert, termed it a “victory” for USDC users, adding: “By entrusting part of USDC’s reserve management to an external manager who is subject to SEC oversight, Circle is helping to make USDC safer. Moreover, USDC customers may now get frequent updates from BlackRock, enhancing transparency.
Circle held an additional $19.41 billion worth of USDC reserves directly as Treasury bills as of November 30. This increased the proportion of USDC reserves held in T-bills directly and through the reserve fund to $32.2 billion, or about 75% of total reserves.
In addition, $11.15 billion of the stablecoin’s reserves were kept as cash in US-regulated financial institutions such as Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, and Silvergate.
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