Circle Reveals Assets Backing USDC Stablecoin

Crypto's No. 2 stablecoin is backed mostly – 61% – by cash and cash equivalents. Here's what comprises the rest.

Jul 20, 2021 at 1:41 p.m. UTC
Updated Sep 14, 2021 at 1:28 p.m. UTC

The majority of Circle’s USDC stablecoin is backed by U.S. dollars, the company revealed on Tuesday.

Circle, a global payments company, was one of USDC's creators. It published a breakdown of its assets backing the stablecoin for the first time in its latest attestation report, which was dated July 16. According to the report, about 61% of its tokens are backed by “cash and cash equivalents,” meaning cash and money market funds.

Yankee Certificates of Deposit – meaning CDs issued by foreign (non-U.S.) banks – comprise a further 13%, U.S. Treasuries account for 12%, commercial paper accounts for 9%, and the remaining tokens are backed by municipal and corporate bonds. 

The company has issued about $22.2 billion worth of USDC, according to the attestation.

It’s unclear what, specifically, Circle has invested in to back USDC. The company intends to go public later this year in a merger with a special purpose acquisition company that would value Circle at $4.5 billion.

According to footnotes in Tuesday’s attestation, the commercial paper has a “minimum S&P rating of S/T A1,” meaning S&P Global Ratings regards the issuer’s ability to meet its financial obligations as being strong.

Circle joins Tether in publishing a rough breakdown of its asset reserves, at least partially answering questions about whether its stablecoin is fully backed. Like Circle, Tether also uses commercial paper to back its USDT token, though commercial paper accounts for far more of Tether’s reserves than Circle’s does.

UPDATE (July 20, 2021, 14:27 UTC): This story has been updated with additional context.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Web 3 Education Platform Pitches ‘Earn While You Learn’ to Business Executives

Metacademy.xyz’s mix of crypto incentivization and education already boasts 2,000 users, founder Shelly Palmer told CoinDesk.

Metacademy.xyz’s mix of crypto incentivization and education already boasts 2,000 users, founder Shelly Palmer told CoinDesk.

CoinDesk - Unknown
2
CoinDesk - Unknown
Tether ‘Transparency Is Needed’ Following Terra’s UST Collapse: Analyst

The director of blockchain market research Quantum Economics said during CoinDesk TV's "First Mover" that Tether should be more transparent about “what they actually hold on their balance sheets.”

The director of blockchain market research Quantum Economics said during CoinDesk TV's "First Mover" that Tether should be more transparent about “what they actually hold on their balance sheets.”

CoinDesk - Unknown
3
CoinDesk - Unknown
OCC Chief Hsu: Crypto Industry Has Unhealthy ‘Dependency on Hype’

Michael Hsu, acting head of the U.S. Office of the Comptroller of the Currency, has worked to limit banks’ involvement in cryptocurrencies.

Michael Hsu, acting head of the U.S. Office of the Comptroller of the Currency, has worked to limit banks’ involvement in cryptocurrencies.

CoinDesk - Unknown
4
CoinDesk - Unknown
Coinbase Becomes First Crypto Firm to Enter Fortune 500 List and the Latest from Davos

The most valuable crypto stories for Tuesday, May 24, 2022.

The most valuable crypto stories for Tuesday, May 24, 2022.

CoinDesk - Unknown