• Circle has released a reserve report detailing its holdings of 44.5 billion USDC tokens.
• The report was reviewed by Grant Thornton and shows that the USDC reserve is backed by a mix of cash and U.S. treasury bonds.
• The fair value of assets in the USDC reserve is the total balance of U.S. dollar-denominated assets, including a mix of cash and treasury bonds.
Circle, a cryptocurrency and stablecoin issuer, has released an accountant-verified report of its treasury reserve holdings, which is currently backing more than $44.5 billion worth of tokens in circulation. The report, reviewed by Grant Thornton, an international accounting firm, breaks down the current make-up of the stablecoin issuer’s reserve vault.
As per the report, 44,553,543,212 USDC tokens are currently backed by $44,693,963,701 U.S. dollars held in custody accounts. It is worth noting that a significant portion of the latter amount is invested in various U.S. treasury bonds.
The fair value of assets in the USDC reserve is the total balance of U.S. dollar-denominated assets, including a mix of cash and treasury bonds. This includes 14 different U.S. treasury bills valued at over $23.5 billion, as well as $48.9 million in cash. The fund also holds $33 million due to the fund, offset by “timing and settlement differences.”
Circle’s reserve fund is registered as a government money market fund. The equity interests in the fund are wholly owned by Circle and are managed to ensure that the USDC tokens in circulation remain backed by a sufficient amount of U.S. dollar-denominated assets.
The reserve report provides investors with an insight into the stablecoin issuer’s ability to back its tokens in circulation. This is essential for maintaining the stability of the USDC token and providing confidence to investors. In addition, the report enables Circle to show that its USDC tokens are fully collateralized and that its reserve holdings are in line with its stated policy.
Overall, Circle’s reserve report provides a transparent verification of its assets and liabilities, allowing investors to have confidence in the USDC token and the services it provides. The audit is especially important given the increasing popularity of stablecoins in the cryptocurrency industry, making the verification of assets ever more important.