Circle has for the first time disclosed the exact breakdown of its USD Coin (USDC) holdings to boost transparency and confidence in the stablecoin issuer.
According to information released by Circle on Thursday, the $55.7 billion in reserves the company had as of June 30 consisted of $42.12 billion in short-term US Treasury bonds and $13.58 billion in cash held at regulated financial institutions in the nation. Its Treasury assets have a weighted average maturity of 43.9 days.
According to an accompanying blog post by Circle chief financial officer Jeremy Fox-Geen, "The USDC reserve is held only in cash and 3-month U.S.
Treasuries, stored in segregated accounts for the benefit of USDC holders, and is wholly distinct from Circle's operations."
Circle stated that the data is the first monthly breakdown of its stablecoin reserves and that, subject to custodian approval, it intends to eventually give daily disclosures of its holdings.
Thanks to the steady growth of decentralized finance (DeFi) and Circle's ongoing dedication to regulatory clarity, USDC has risen in the stablecoin rankings throughout much of 2022.
ConsenSys claims that the market's belief that Circle and the cryptocurrency exchange Coinbase will "issue USDC appropriately" has contributed to the stablecoin's growth.
After only recently launching a fully-reserved euro token, Circle is now expanding its stablecoin operations beyond the U.S. dollar.