Against the backdrop of the market crisis and the fall of Terra, users began to lose confidence in cryptocurrencies, and even though USDC is one of the most stable in the market, the crisis affected it as well.
Because of this, Circle decided to show how USDC stablecoin is supported. Circle’s CEO Jeremy Allaire published the information about how the coin is supported and how it works on his page.
According to him, the reserves securing the stablecoin are in BlackRock, Bank of New York, and other U.S. financial institutions. All in all, stablecoin has $50.6 billion in collateral. $39 billion are U.S. Treasury bills with a maturity of up to three months. $11.6 billion is in cash.
To keep abreast of the situation, Circle publishes reports every month on whether the issuance of stablecoin complies with the reserves supporting the USDC. In addition, every year, an audit by leading firms in this area is carried out.Allaire noted.
Moreover, in addition to the independent audit, the company and its financial operations are overseen by federal agencies because it has an MTL license.
In the future, Circle promised they would tell how Circle Yield works. The product, according to the company’s positioning, is an investment contract that only accredited bidders will be able to interact with.
Previously, we wrote that TRON is trying its best to stabilize the USDD stablecoin.
