Circle, the issuer of the USDC stablecoin, has revealed the composition of its reserves, highlighting a strong focus on short-term US government securities. According to the results published in the material, this strategy is designed to ensure full dollar backing for its digital currency, providing confidence to users and investors alike.
Circle's Financial Position
According to recent disclosures, Circle holds approximately $51 billion in overnight reverse repurchase agreements, a financial instrument that allows the company to manage liquidity effectively. Additionally, around $146 billion is allocated to Treasury bills with maturities of less than three months, further emphasizing the company's commitment to maintaining highly liquid assets.
Security and Reserve Strategy
Furthermore, Circle has approximately $10 billion in deposits at systemically important financial institutions, which adds another layer of security to its reserve strategy. This diversified approach includes the following elements:
- Support for the stability of USDC
- Regular verification of reserves through monthly third-party attestations
- Conducted by Deloitte
This reinforces transparency and trust in Circle's operations.
In a significant development, Telcoin has launched its eUSD stablecoin, marking a milestone as the first US-chartered bank to issue a dollar-backed stablecoin on public blockchains. This contrasts with Circle's recent focus on USDC reserves, highlighting the evolving landscape of digital currencies. For more details, see eUSD launch.
