Circle, the issuer of USD Coin, has released a report on the current state of its reserves, guaranteeing the more than $44.5 billion worth of USDC tokens in circulation today.
Circle’s December 2022 Reserve Report, verified by third-party auditor Grant Thornton, analyzes the stablecoin issuer’s current reserve composition. USDC 44,553,543,212 outstanding is backed by USD 44,693,963,701 held in custody, confirm the document. However, it should be noted that a significant portion of these funds are invested in US Treasuries
The Circle Reserve Fund is registered as a government money market fund. The equity holdings in the fund are wholly owned by Circle, and include 14 different US Treasury Bills worth more than $23.5 billion. The fund also holds $48.9 million in cash, as well as another $33 million owed to the company that will be offset later.
Read also: In 2023, stablecoin payments could exceed all major credit card networks
There are also two US Treasuries worth $10.5 billion, shown in a separate category along with $10.5 billion in cash held at various financial institutions on behalf of Circle. US banks holding Circle’s cash reserves include Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, and Silvergate Bank.
Read also: Sharp decline in the market cap of BUSD, the Binance stablecoin: what happened?
Both Circle and payments platform Ripple took part in the crypto and blockchain-focused seminars at the World Economic Forum in Davos in January this year. Circle’s vice president of global policy Corey Then said company executives have been in discussions with policy makers, technology and traditional companies, as well as humanitarian organizations to promote potential uses of USDC as a payment solution.
Over the past two years, Circle’s position as a stablecoin issuer has grown significantly: USDC is now the second stablecoin pegged to the US dollar in terms of market capbehind only USDT.
