Circle and its USD Coin are doing their best to gain the general public's trust. According to the latest report, by the end of November, $43.23B were USDC in circulation. Circle claims to have $43.B in reserve backing. What's impressive about this? 65% of this reserve fund is held in U.S. Treasury bills.
We must go back in time a bit to understand the whole situation. On November 3, Circle established its Reserve Fund. At that time, it moved more than 29.5% of the stablecoin reserves into it.
Then enter market giant Blackrock into the equation. According to Blackrock's disclosure report, USD reserves held in Circle's Reserve Fund had grown to about $28.6 billion, or 65%.
Going into November 30, Circle directly held Treasury bills worth another $19.41B. As a result, $32.2B, about 65% of the total reserves, of USDC were now in Treasury bills directly and through the reserve fund.
Many reputable financial institutions hold part of the $11.15 billion in stablecoin reserves. Bank of New York Mellon, Customers Bank, Citizens Trust Bank, New York Community Bank, Silvergate Bank, and others are among the reserve holders. The U.S. government heavily regulates all banks.
This new development seems paramount to the ecosystem's confidence in USDC and Circle. While many do not appreciate the inclusion of Blackrock, it is a heavily regulated entity by the SEC. This regulation, in turn, leads to more periodic updates on the status of USDC's holdings.
This whole situation is an excellent exercise in transparency to gain market positions. Circle is doing everything it can to demonstrate that USDC is fully backed. The community appreciates this whole effort. Transparency for the win!
