In Brief:
- To achieve this milestone Circle has already gained support from Coinbase and Centre.
- However, next two attestation reports will not reflect it.
A blog post published on 23rd August stated that Circle will now “keep the USDC reserve solely in cash and short-duration U.S. Treasuries.”
To achieve this milestone Circle has already gained support from Coinbase and Centre. The goal is true financial transparency.
In a tweet, Coinbase President and COO Emilie Choi said the crypto exchange’s previous terminology, is “backed by a dollar in a bank account,” might have been clearer.
Circle reserves expanded beyond cash and cash equivalents in May 2021. To provide transparency, the company provided a more detailed breakdown of reserve composition. Also, to add clarity and insight into the funds backing USDC it published a report.
After that, GrantThornton, the Centre’s auditing entity, broke out the investment portfolio for the USDC’s $22 billion reserves in the May attestation report, issued in mid-July.
Aside from cash and US Treasury bills, Circle diversified its USDC reserves by including:
- Yankee Certificates of Deposit (13%),
- Commercial Paper (9%),
- Corporate Bonds (5%),
- Municipal Bonds & US Agencies (0.2 %).
While the adjustments in the investment portfolio for USDC reserves began in May 2021, Emily Choi tweeted. She is Coinbase’s chief operating officer, indicating in a Tweet that they “will not extend past September.”
“To be clear, the next two attestation reports for USDC reserves (June and July) will reflect a well-diversified investment portfolio. Beginning in August, the trend will be reversed, “Choi further added.
