- There was a total of $13.58 billion in Circle’s bank accounts at regulated U.S. institutions.
- Treasury bonds presently hold an additional $42.1 billion.
The stablecoin’s backers, Circle, published their first monthly summary of the token’s assets only last week. USDC is currently stored only in cash and three-month U.S. Treasury bonds, according to the stablecoin provider, who stressed that the USDC reserve is completely distinct from the company’s activities.
At the end of June, there were 55,569,519,982 USDC tokens in circulation, backed by $55.7 billion in reserves, according to data from the business. There was a total of $13.58 billion in Circle’s bank accounts at regulated U.S. institutions such as Silvergate Bank and Bank of New York Mellon, as well as Silicon Valley Bank.
Strict Regulatory Framework Followed
Treasury bonds presently hold an additional $42.1 billion. There had been speculation that USDC might follow Terra’s lead and fall under, but CEO Jeremy Allaire said the Boston-based business was “is in the strongest position it has ever been.”
According to Fox-Geen, Circle is a US-registered financial services business working within the same regulatory framework as payment providers like Apple Pay, PayPal, and Block with their Cash App services.
Fox-Geen stated:
“The framework we operate under is widely trusted. It is used by the largest payments companies and protects hundreds of tens if not hundreds of millions of individuals with billions of dollars of money in these systems.”
If Circle is losing money due to incentives paid to reserve holders, Fox-Geen noted that “the crypto term for [such allegations] would be FUD (Fear, Uncertainty, Doubt), … much of which is not just speculative, but is inaccurate.” If Circle had such an agreement with a bank, it would have been extensively recorded and declared in the company’s public SEC filings, which can be accessed from the regulator’s website.
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