Circle reveals the whole breakdown of its $55.7B USDC reserves
75.6 percent of Circle’s reserves were invested in U.S. Treasuries as of the 30th of June, while 24.4% were maintained in cash at regulated financial institutions.
Circle has revealed a comprehensive analysis of its USD Coin (USDC) assets for the first time, a move intended to promote transparency and increase confidence in the stablecoin issuer.
As of June 30, Circle’s $55.7 billion reserves consisted of $42.12 billion in short-term U.S. Treasuries and $13.58 billion in cash held at regulated financial institutions in the United States, the firm announced Thursday. The average weighted maturity of its Treasury holdings was 43.9 days.
Circle’s chief financial officer Jeremy Fox-Geen noted in an accompanying blog post, “The USDC reserve is maintained only in cash and 3-month U.S. Treasuries, stored in segregated accounts for the benefit of USDC holders, and is completely distinct from Circle’s activities.”
Circle said that this is the first monthly breakdown of its stablecoin reserves and that it intends to publish daily updates of its holdings in the future, pending clearance from its custodians.
Throughout most of 2022, USDC has ascended the stablecoin rankings due to the steady growth of decentralised finance (DeFi) and Circle’s continual dedication to regulatory clarity. According to ConsenSys, the increase of the stablecoin has been correlated with an optimistic market opinion that Circle and the cryptocurrency exchange Coinbase would “issue USDC responsibly.”
Having just recently issued a fully-reserved euro token, Circle is extending its stablecoin operations outside the U.S. currency. Euro Coin, commonly known as EUROC, will be completely backed by a single currency, as reported by Cointelegraph. Recently, for the first time since 2002, the euro has reached parity with the U.S. dollar.