Nearly 65% of USDC reserves are held in US Treasury bills News ▸ US ▸ USDC ▸ Stablecoins
Nearly 65% of USDC reserves are held in US Treasury bills
US T-bills held by Circle Reserve Fund continues to grow
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Updated: Jun. 23, 2023 at 10:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Circle held $43.4 billion in USDC reserves to back 43.23 billion USDC in circulation as of Nov. 30, 2022. Of these reserves, $12.79 billion lay in the Circle Reserve Fund, a registered government money market fund wholly owned by Circle and managed by BlackRock. The fund’s holdings included 12 US treasury bills as of Nov. 30.
Circle created its Reserve Fund on Nov. 3, and in less than a month, it transferred around 29.5% of the stablecoin reserves to the fund. Since then, Blackrock’s disclosures information reveals that “USDC reserves invested in the Circle Reserve Fund have risen to around $28.6 billion, or 65%,”
Popular crypto analyst John Paul Koning called it a “win” for USDC users, adding:
“Circle is yielding some of its control over USDC’s reserves to an external manager subject to SEC regulation, which ultimately makes USDC safer. Transparency improves too, since USDC users can now get regular updates from BlackRock.”
Another $19.41 billion worth of USDC reserves were held as treasury bills directly by Circle as of Nov. 30. This brought the portion of USDC reserves held in T-bills directly and through the reserve fund up to $32.2 billion, or around 75% of total reserves.
Additionally, $11.15 billion of the stablecoin’s reserves was stored as cash at US-regulated financial institutions, which include Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, and Silvergate Bank.
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Monika Ghosh
In 2020, Monika immersed herself in crypto, maintaining skepticism yet firmly believing blockchain could address key issues like financial disparity and transparency. A book-lover, she's also a passionate food enthusiast.
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USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
