Circle has published report on Treasury reserves supporting tokens
2023.01.30 04:24
Circle has published report on Treasury reserves supporting tokens
By Tiffany Smith
Budrigannews.com – An accountant-verified report on the treasury reserve holdings that back more than $44.5 billion worth of tokens that are currently in circulation has been made available by USD Coin (USDC) issuer Circle.
The GrantThornton accountancy group reviewed Circle’s December 2022 reserve report, which details the stablecoin issuer’s current reserve vault composition. Circle claims that $44,693,963,701 U.S. dollars are currently in custody accounts and are used to back 44,553,543,212 USDC.
It is important to note that a sizeable portion of the latter sum is invested in various Treasury bonds issued by the United States. The total balance of USD denominated assets, which includes a mix of cash and treasury bonds, is the fair value of assets in the USDC reserve, according to Circle’s vice president of accounting, Timothy Singh.
Circle’s Reserve Fund is listed as a money market fund of the government. Circle owns all of the fund’s equity interests, which include 14 different US Treasury Bills worth more than $23.5 billion. Additionally, the fund possesses $48.9 million in cash, and “timing and settlement differences” offset the remaining $33 million.
A separate reserve assets category includes two additional $10.5 billion-worth of US Treasury securities and another $10.5 billion in cash held by various financial institutions on Circle’s behalf.
The Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, and Silvergate Bank are among the U.S. financial institutions that hold Circle’s cash reserves.
At the World Economic Forum in Davos in January 2023, workshops centered on cryptocurrencies and blockchain were attended by notable attendees, including payments platform Ripple and Circle.
Corey Then, Circle’s vice president of global policy, stated that the organization had discussed the possibility of using USDC as a payment method in the future with policymakers, traditional businesses, technology companies, and humanitarian organizations.
Circle’s position as an issuer of stablecoins has consistently grown over the past two years, putting USDC behind USDT Tether as the most frequently used USD-backed stablecoin.
