Altcoin Neiegkeeten- The firm no longer has any commercial paper on hand.
- As of June 30, Circle had $42.1 billion in U.S. government bonds.
A detailed analysis of the assets underlying the USDC stablecoin rising reserve has been made public by Circle, the payments startup behind the USDC. Circle’s Thursday report, although not audited, provides unprecedented openness for the firm, especially in light of the increased attention stablecoins are presently receiving from authorities across the globe in the wake of Terra’s demise.
According to Circle’s report, the firm no longer has any commercial paper on hand. Commercial paper is a short-term, unsecured financial instrument. At the end of last year, Circle had 9 percent of its reserves in commercial paper, but it subsequently said it would switch to cash and U.S. government bonds as its primary funding source in the future.
Circle Now Has $55.7 Billion in Reserves
As of June 30, Circle had $42.1 billion in U.S. government bonds, according to the report released Thursday. All of these bonds are set to mature on or before September 29. It is stated that Signature Bank, Silicon Valley Bank, and Silvergate Bank, among others, are keeping the remaining $13.6 billion in corporate reserves in cash.
Circle now has $55.7 billion in cash, slightly more than the 55 billion USDC tokens currently in circulation. Now, a stablecoin called USDC is the fourth biggest cryptocurrency by market capitalization. An asset or reasonably price-stable currency, such as the U.S. dollar, is used to value a stablecoin.
Stablecoins are characterized by their capacity to instantly and effortlessly be redeemed for the underlying asset. Stablecoins can maintain their price pegs because arbitrage incentives are created in the market.
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Source: https://thenewscrypto.com/circle-claims-stablecoin-usdc-fully-backed-by-cash-reserves/