Bullet Points:
• Circle has released its reserve report for December 2022, highlighting overcollateralized asset holdings currently backing 44.5 billion USDC tokens in circulation.
• The report was reviewed by Grant Thornton accountancy group and included a mix of cash and treasury bonds.
• The total balance of U.S. dollar-denominated assets is valued at over $44.7 billion.
Circle, the U.S. dollar-backed stablecoin issuer, has released its December 2022 reserve report, highlighting the asset holdings currently backing 44.5 billion USDC tokens in circulation. The report was reviewed by Grant Thornton, a global accountancy group, and includes a mix of cash and treasury bonds. The total balance of U.S. dollar-denominated assets is valued at over $44.7 billion.
The report reveals that the reserve fund is registered as a government money market fund. The equity interests in the fund are wholly owned by Circle and include 14 different U.S. treasury bills valued at over $23.5 billion. The fund also holds $48.9 million in cash, while a further $33 million is due to the fund, offset by “timing and settlement differences.”
Circle has earned the trust of customers and stakeholders in the stablecoin space by providing transparency and security. The reserve report is an important step in maintaining full visibility over the USDC token’s backing assets. Circle has also taken several measures to protect the USDC reserve fund and to maintain compliance with U.S. regulations. These include the formation of a reserve management and oversight team, the implementation of a robust risk management framework, and the engagement of an external custodian to manage the fund’s assets.
The report also reveals that Circle has adopted the American Institute of Certified Public Accountants’ (AICPA) new attestation standard for the USDC reserve report. This new standard enhances assurance and transparency for the USDC reserve fund, and provides users with greater assurance that the USDC token is fully backed by the U.S. dollar.
Circle’s USDC reserve report is an important step in providing greater transparency for the USDC stablecoin. The report’s findings demonstrate that the USDC token is fully backed by U.S. dollar-denominated assets, which provides users with the confidence that the token is secure and reliable. This, in turn, helps to further bolster the reputation of the USDC stablecoin, and provides users with confidence in its stability.
