Coinbase Says USDC Reserves to Be Held in Cash, Short-Term Treasurys From September

President and COO Emilie Choi in a Twitter post on Monday clarified earlier language on the crypto exchange's website.

By Greg Ahlstrand

Aug 23, 2021 at 6:00 a.m. UTC

Updated Sep 14, 2021 at 1:43 p.m. UTC

Coinbase Global Debuts Initial Public Offering At Nasdaq MarketSite

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Greg Ahlstrand

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Coinbase President and COO Emilie Choi said in a tweet that the U.S. crypto exchange's recent statement of every USDC being "backed by a dollar in a bank account" could have been more clear. Coinbase removed that language from its site about two weeks ago.

Coinbase "should have moved faster" to update such statements on its website when Circle shared its May report on USDC reserves in late July, Choi wrote. "That was a mistake and Coinbase takes ownership for that."
Choi also wrote that "USDC has always been fully backed by reserves equal to or greater than the USDC in circulation, giving users the ability to always redeem 1 USD coin for US$1.00."
Changes in the investment portfolio for USDC reserves began in May 2021 and will not extend past September, Choi wrote.

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.

Greg Ahlstrand

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.