Circle, the issuer of the USDC stablecoin, has released a breakdown of its token reserves for the first time. More than half of stablecoin collateral – 61% – is cash and cash equivalents.
According to the latest attestation report from Circle, about 61% of USDC is backed by “cash and cash equivalents,” meaning fiat money and money market funds. Dollar certificates of deposit issued by foreign banks in the US market account for 13% of the collateral of the stablecoin.
US Treasury bonds account for 12% of reserves, and short-term bills – 9%. Just over 5% is held in municipal and corporate bonds. As of mid-July 2021, the company had issued USDC worth about $ 22.2 billion.
“The latest reserve statement includes a breakdown of US dollar collateral held and controlled by US regulated financial institutions in accordance with the laws and guidelines of US money market regulators,” said Circle Founder and CEO Jeremy Allaire.
According to the notes to the report, short-term notes are highly rated by S&P Global Ratings. That is, the issuer’s ability to fulfill its financial obligations is assessed as high.
Recall that in May, for the first time since the launch of the USDT stablecoin in 2014, Tether disclosed detailed information about the assets that ensure the token emission. About 76% of USDT is backed by traditional currencies and liabilities in them. Like Circle, Tether uses short-term bills of exchange to back up USDT, although they hold much more reserves than Circle.
Earlier this month, Circle announced a merger with Concord Acquisition Corp, which will allow it to enter the US stock market later this year.