Circle reveals assets backing USDC stablecoin

Crypto’s # 2 stablecoin is backed primarily (61%) by cash and cash equivalents. This is what the rest comprises.

Circle reveals assets backing USDC stablecoin

majority of Circle’s USDC stablecoin (+ 0.02%) is backed by US dollars, the company revealed Tuesday.

Circle, a global payments company, was one of the creators of USDC. It published a breakdown of its assets backing the stablecoin for the first time in its latest certification report, which is dated July 16. According to the report, around 61% of its tokens are backed by ‘cash and cash equivalents’ – that is, cash and money market funds.

Yankee Certificates of Deposit, that is, CDs issued by foreign (non-US) banks, comprise an additional 13%, US Treasuries accounts for 12%, commercial paper accounts for 9%, and Remaining tokens are backed by municipal and corporate bonds.

By registering, you will receive emails about CoinDesk products and agree to our terms and conditions and our privacy policy. company has issued about $ 22.2 billion in USDC, according to the certification.

It’s unclear what, specifically, Circle has invested in to support USDC. company intends to go public later this year in a merger with a special-purpose acquisition company that would value Circle at $ 4.5 billion.

According to the footnotes in Tuesday’s certification, the commercial paper has a “minimum S&P rating of S / T A1,” which means that S&P Global Ratings considers the issuer’s ability to meet its financial obligations as solid.

Also read Solidproof to launch an automatic verification tool for more secure blockchain projects

Circle joins Tether to publish a rough breakdown of its asset reserves, at least partially answering questions about whether its stablecoin is fully backed. Like Circle, Tether also uses commercial paper to back its USDT token (+ 0.05%), although commercial paper represents far more Tether reserves than Circle’s.

Source: Coindesk.com

more

Related Posts

© 2024 Cryptocoin Budisma.net