• 24 June, 2024
News

30% of USDC’s Reserves Are invested In its Government Money Market Fund

The most recent attestation report provided by Circle reveals that thirty percent of USDC’s reserves, or $12.79 billion, are invested in the Circle Reserve Fund, which is a government money market fund managed by BlackRock.

The well-known cryptocurrency expert John Paul Koning referred to it as a “win” for users of USDC. He went on to say that Circle is ceding some of its authority over USDC’s reserves to an external manager who will be subject to SEC oversight, which would ultimately make USDC safer. Paul said that there is also an improvement in transparency as a result of USDC users being able to obtain regular updates from BlackRock.

In his words:

“This seems like a win for USDC users. Circle is yielding some of its control over USDC’s reserves to an external manager subject to SEC regulation, which ultimately makes USDC safer.”

In addition, approximately 75% of the total USD Coin (USDC) reserves are kept in the form of US treasury bills. As of the 30th of November in 2022, Circle had $43.4 billion in USDC reserves, which were used to back the 43.23 billion USDC that were in circulation.

The Circle Reserve Fund, a registered government money market fund that is entirely owned by Circle and managed by BlackRock, held $12.79 billion of these reserves. As of November 30th, the fund’s holdings contained 12 US treasury notes.

In addition, 11.15 billion dollars of the stablecoin’s reserves were kept as cash in financial institutions that are regulated in the United States. These banks are Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, and Silvergate Bank.

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