Circle, a global financial technology firm that provides internet-native payments and treasury infrastructure, announced the transition of USDC reserves to 100 percent cash and short duration U.S. Treasuries to be reflected in the dollar digital currency’s September attestation.
Since inception, USDC reserves have been bound by the permissible investment rules under state money transmission regulations, which is how Circle is regulated today. These rules, together with the more conservative reserve management standards of the Centre Consortium, a partnership between Circle and Coinbase that provides standards for stablecoins, protect consumers and ensure 1:1 dollar liquidity for USDC at all times.
“As industry and government work together on the appropriate future supervisory standards, Circle is committed to maintaining or exceeding those standards, driving innovation, and building reliable, trusted, secure and compliant infrastructure for dollars on the internet,” said Jeremy Allaire, Co-founder and CEO of Circle.
Having graduated from early narrow use cases, digital currencies are becoming increasingly accepted as part of the national and global financial market infrastructure, and their rapid growth is drawing warranted attention from global policymakers and national regulatory agencies alike.
“As regulators consider the implications of digital currencies growing from $100 billion to potentially supporting trillions in economic activity in the coming years, supervisory standards are a necessity,” said Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle. “We welcome the conversation and opportunity to play a leading role in the advancement of commerce and economic activity on the internet.”