The USDC stablecoin’s reserves will be reversed back to cash and US Treasury bills, months after its issuer expanded its investment portfolio.
Centre, the organization that issues the $28 billion USDC stablecoin backed by Coinbase and Circle, announced Monday that it will now “keep the USDC reserve fully in cash and short-term US Treasury securities.” The decision comes less than a month after the firm disclosed in a July report that it has increased its investments in USDC reverses since May.
GrantThornton, the USDC’s auditing body, detailed the investment portfolio for the USDC’s $22 billion reserves at the time in its May attestation report, which was published in mid-July. Along with cash and US Treasury bills, the firm diversified its reserves by including Yankee Certificates of Deposit (13%) Commercial Paper (9%) Corporate Bonds (5%), and Municipal Bonds & US Agencies (5%). (0.2 percent ).
Coinbase also discreetly updated the USDC description on its website in July, removing the language that previously stated that each USDC was backed by one US dollar “in a bank account.”
According to Emily Choi, Coinbase’s chief operational officer, the adjustments to the investment portfolio for USDC reserves began in May 2021 and “will not extend beyond September.” “To be clear, the next two attestation reports for USDC reserves (June and July) will reflect a diversified investment portfolio. This will reverse in August “Choi continued.
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