Stablecoins Struggling To Remain Robust Since The Terra UST . Fall stable coins† The rise and fall of Terra’s stablecoin plummeted investors’ confidence in the asset.
It also led to a situation of increased need to provide the utmost transparency to the assets and reserves that support the stablecoins. This is to ensure that history does not repeat itself and that no other stablecoin falls off the pegs and in a similar situation to UST.
USDC has proven to be robust in the midst of all the chaos, and it further aims to clear the slightest doubt about its support. To further bolster its confidence, Circle, the stablecoin issuer, has released a transparency report highlighting its assets.
Circle discloses its asset holdings
Circle regularly blogs about its transparency and how it plans to release a monthly breakdown of its USDC reserves. As part of this process, Circle creates its USDC. familiar reserve assets in the first monthly report of June 30, 2022.
The stablecoin issuer stated that USDC reserves are held exclusively in cash and 3-month US Treasury bonds. It also mentions that it is held in segregated accounts, which are separate from Circle’s operating accounts. Circle also stated that the USDC reserve is fully subject to US state and federal laws.
It also highlighted that they have conducted monthly audits at a leading accounting firm since its launch in 2018. According to the report, there are 55,569,519,982 USDC in circulation. The total US Treasury bill owned by Circle is $42,122,235,732. Total cash held with US regulated financial institutions is $13,581,264,959. Total USDC reserve assets held on behalf of USDC holders are currently $55,703,500,691. Circle is trying to show its investors how it safely maintains USDC’s robustness.