Transparent as glass, really? – Circle’s proposed USDC stablecoin has come a long way since its official launch in 2018
. A path that has quickly led it to become the second most widely used US dollar-backed stablecoin, after Tether’s USDT. Now, in an effort to be transparent, Circle is revealing the reserves that ensure this cryptocurrency’s parity with the greenback.
A concern to do the right thing for Circle’s USDC?
3 years after the issuance of the first USDC, the success of the stablecoin launched jointly by Circle and Coinbase is no longer disputable, so much so that it is nibbling away at the current king USDT’s market share day after day
In a publication
released this July 20, Jeremy Allaire, the co-founder and CEO of Circle, explains the concerns of trust and transparency that he and his company want to give to the USDC:
“(…) While public disclosure of [USDC-backed] reserves is not currently a regulatory requirement for stablecoins or privately issued digital currencies, we want to continue to point the industry in the right direction, with greater transparency and a deeply engaged public-private collaboration model, especially as the role of dollar-based digital currencies gains importance in the global financial system.”
<img width=”1200″ height=”630″ src=”//www.w3.org/2000/svg’%20viewBox=’0%200%201200%20630’%3E%3C/svg%3E” alt=’Circle resolves to reveal its USDC-backed reserves to the public”/><img width=”1200″ height=”630″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/07/usdc-transparency-july2021.png” alt=’Circle resolves to reveal its USDC-backed reserves to the public”/>Poster of Circle’s reserve disclosure announcement – Source: Circle
Circle is disclosing the details of the assets behind its USDC
In addition to continuing to have the independent accounting firm Grant Thornton produce regular certificates certifying the reserves backed by the USDC, Circle will now provide the precise distribution of the dollar-denominated assets that ensure the issue parity of 1 USDC for 1 US dollar
This asset breakdown can be seen in the latest <a href=”https://www.centre.io/hubfs/pdfs/attestation/Grant-Thorton_circle_usdc_reserves_
by Grant Thornton (the 33rd since the creation of the USDC). This shows that the 22.2 billion USDC as of July 16 is 100% secured and covered primarily by :
- 13.4 billion in cash and cash equivalents ;
- USD 2.9 billion in Yankee certificates of deposit;
- 2.7 billion in US Treasury securities.
<img width=”739″ height=”581″ src=”//www.w3.org/2000/svg’%20viewBox=’0%200%20739%20581’%3E%3C/svg%3E” alt=’Circle finally decides to share detailed certification of reserves behind the USDC” /><img width=”739″ height=”581″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/07/circle.png” alt=’Circle finally decides to share the detailed certification of reserves behind the USDC” />Detailed certification of reserves behind the USDC – Source: centre.io
It must be said that Jeremy Allaire confirms once again, in this latest message, the desire to see Circle listed by the end of 2021. We can understand even more this resolution to show a clean slate, both to its users/investors and to the regulatory authorities. There is probably also a desire not to find itself, like Tether USDT, in a shady uncertainty, which then forces you to row hard to rebuild your reputation
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