The majority of Circle’s USDC stablecoin is now backed by United States dollars, the firm revealed within an official announcement earlier on Tuesday.
Circle, a worldwide payments company, was one among USDC’s creators. It published a breakdown of its assets backing the stablecoin for the primary time in its latest attestation service, which was dated 16th July. Consistent with the report, about 61% of its tokens are backed by “cash and cash equivalents,” meaning cash and market funds.
Yankee Certificates of Deposit – meaning CDs issued by foreign [non-US] banks – comprise an extra 13%, U.S. Treasuries account for 12%, cash equivalent accounts for 9%, and therefore the remaining tokens are backed by municipal and company bonds.
The company has issued about $22.2 Bln worth of USDC, consistent with the attestation.
It’s unclear what, specifically, Circle has invested in to back USDC. The corporate intends to go public later this year within a merger with a special purpose acquisition firm that might value Circle at $4.5 Bln.
In line with footnotes earlier in Tuesday’s attestation, the commercial equivalent features a “minimum S&P rating of S/T A1,” meaning S&P Global Ratings regards the issuer’s ability to satisfy its financial obligations as being strong.
Circle joins Tether [USDT] in publishing a rough breakdown of its asset reserves, a least partially answering questions on whether its stablecoin is fully backed. Like Circle, Tether also uses commercial papers equivalent to back its USDT token, via commercial paper accounts for far more of Tether’s reserves than Circle’s does.