Circle Publishes its First Monthly USDC Report With $55.7B Held in Reserve

Circle, the blockchain-based fintech startup in charge of the issuance of the USD Coin (USDC) stablecoin has published the first monthly report for the reserve backing the digital payment token. According to the report which is yet to be audited, the company has a cumulative reserve base of $55,703,500,691 as of June 30th this year.

USDC is the second largest stablecoin, trailing only Tether (USDT) with respect to market capitalization. Over time, these stablecoins have been placed under intense scrutiny alongside a slew of accusations about their transparency. The published report has been tagged as an attempt to maintain transparency about its operations with its coin holders.

Per the report, reserve for the USDC is mainly held as cash reserves worth $13.58 billion and $42.12 billion in three-month Treasury securities. The cash reserves are reportedly held in regulated US banks including the Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, Silvergate Bank and US Bancorp.

“The USDC reserve is held solely in cash and 3-month U.S. Treasuries, held in segregated accounts for the benefit of USDC holders, and is entirely separate from Circle’s operations. The USDC reserve is subject to all the same protections under U.S. state and federal law as afforded to other large scale payments innovators entrusted by millions of customers with tens of billions of dollars of customer assets,” firm said in a blog post.

The firm also published the 19 securities it currently holds all of whom has a maturity date ranging from July 5 to September 29.

Standing Strong Amidst Regulations 

The collapse of the Terra USD (UST) stablecoin has forced a lot of regulators to be more strict with respect to their approach towards stablecoin issuers, particularly algorithmic ones. In a bid to provide more oversight over the industry, a slew of regulations may be introduced in the US in the near term as it has been concluded in the European Union.

Whatever regulation that will be introduced, Circle said it is ready to abide by all.

“While U.S. policymakers work to enact federal regulations for stablecoins, Circle continues to increase our transparency based on new industry innovations and what USDC holders within our ecosystem would like to see. From the beginning, we have been committed to building trust and transparency and will continue to carry the mantle,” the blog post said.