Circle discloses $55.7 billion worth of cash, Treasury reserves

Circle issued its first monthly report closely detailing reserves for its US-dollar backed stablecoin, showing $55.7 billion in cash and three-month US Treasury securities at the end of June. 

The fintech company, best known for its dollar-pegged stablecoin, USDC, disclosed in the unaudited report that it is holding $13.58 billion in cash at regulated US banks. The banks include: Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, Silvergate Bank and US Bancorp.

Circle, which has described USDC as being fully backed, reported 55.57 billion USDC in circulation as of June 30. The company also launched a euro-backed stablecoin called EUROC in June. These securities have a weighted average maturity of 43.9 days.

In addition, Circle disclosed holding $42.12 billion in three-month Treasury securities. The list shows 19 securities maturing between July 5 and September 29 of this year. 

“The USDC reserve is held solely in cash and three-month US Treasuries, held in segregated accounts for the benefit of USDC holders, and is entirely separate from Circle’s operations,” the blog post said.  The company added that it has received third-party attestations on a monthly basis since introducing USDC in 2018.

The disclosure is the latest in a series of Circle blog posts entitled “How To Be Stable,” which Circle co-founder and CEO Jeremy Allaire highlighted in a July 2 Twitter thread denying rumors circulating on social media that claimed USDC was facing collapse.

In a new thread posted today, Allaire said the disclosure about USDC reserves was part of the company’s ongoing efforts to focus on transparency. 

“As part of our commitment to increasing transparency and disclosure around USDC, today we’re publishing our first monthly breakdown of the USDC reserve assets, by each and every Treasury bond and list of cash reserve custodians,” Allaire wrote.

“We are not done, we are continuing to do more to provide even greater transparency, including seeking permission from our banking partners to disclose how much cash at each institution, as well as moving towards daily public reporting on reserve assets. We will get there,” Allaire added.

Paxos announced on July 8 that it would start providing detailed disclosures for the reserves backing its Pax Dollar (USDP) and Binance USD (BUSD) stablecoins on a monthly basis. It offers the latter through a partnership with Binance.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.