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Circle will transfer part of USDC reserves to a fund managed by BlackRock


Aug 19, 2022

Circle will transfer part of USDC reserves to a fund managed by BlackRock

Circle has begun transferring USD Coin Stablecoin (USDC) reserves to a special fund created by BlackRock and registered with the SEC .

“Initially, we managed USDC reserves to minimize risk (liquidity, counterparty, operational, reputational, etc. ะด.) so that Stablecoin holders can be assured – their assets are safe and can be exchanged at any time at a 1:1 ratio for U Is Trust Wallet .S. dollars,” the firm said in a statement.

Circle Reserve Fund, managed by BlackRock Advisors, is a registered fund under current money-market rules. Its assets will consist of funds in fiat and short-term U.S. Treasury bonds.

As government securities are redeemed, proceeds will go to purchase new ones.

Bank of New York Mellon acts as custodian. The institution already holds bonds from USDC reserves.

According to CoinGesco, the market supply is ~42.13 billion USDC. According to Circle’s website, as of Oct. 27, assets in the staplecoin collateral were valued at $44.1 billion.

In July, co-founder and CEO Jeremy Allaire disclosed details of USDC reserves. The initiative was aimed at bolstering confidence in the asset amid industry troubles following the Terra collapse.

That same month, the firm released its first monthly report on the state of USDC’s reserves.

As a reminder, Circle was licensed as a Stablecoin issuer in Singapore in November.

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