Boston-based digital currency company Circle, with the support of Centre and Coinbase, has announced that it will change the composition of USDC reserves to cash and short-term US Treasury Bonds.
Per Grant Thornton’s attestation, Circle expanded beyond cash and cash equivalents already in May 2021, However, witnessing the evolving regulatory landscape and scrutiny in the ecosystem, the company has provided a detailed breakdown of its reserve composition. Previously, the USD coin was backed 1:1 by dollar and cash made up over 60% of its entire reserves. The remaining 40% was backed by various short-term treasury bonds.
Circle’s call to abide by the regulations
Amid increased regulatory scrutiny from authorities, stablecoin issuers are instructed to regularly provide detailed breakdowns of their reserve composition. To tackle this evolving regulatory landscape, Circle also announced its USDC reserve composition on Sunday. However, the company’s announcement seemed more of a revel
Źródło: https://coingape.com/circle-changes-usdc-reserve-composition-cash-treasury-bonds/
