The USDC stablecoin issuer reported its first-ever monthly breakdown of USDC reserve assets to bring transparency to its operations.
The circle is a USDC stablecoin issuer company. At present, USDC is standing at second rank in the list of top stablecoins of the crypto market, just after Tether (USDT). However, USDT is standing at first rank but still crypto investors have more trust in USDC stablecoin over USDT. In the recent extreme volatility situation, the USDT coin faced a correction in its $1 pegged value by 2% but USDC was standing strongly.
Recently Circle published its new blog post to report its first monthly full breakdown of the USDC reserve asset, as a part to remain fully transparent with the USDC users.
Circle stated through blog post:
“We are working toward providing daily disclosure as well as securing permissions from our custodians to disclose the amount they each hold.”
Circle confirmed that the company is holding $54.7 billion in reserved assets against $55.5 billion worth of USDC circulation. Around $42 billion in funds are reserved in the US Treasury securities. And the rest of the funds are held in protected US financial institutions.
This stablecoin issuer company also said that it is planning to report disclosure daily but for the same, it is working to secure permission from custodians to disclose the amount they each hold.
Terra USD collapse and struggle for crypto companies
The recent extreme volatility in the crypto market resulted in the collapse of many crypto companies. Initially, Terra’ Luna & UST stablecoin touched the ground price in May 2022, and after that many companies faced problems because of new panic among the crypto investors, which was initiated automatically from the Terra collapse event.
In particular, USDT Stablecoin saw a significant outflow of funds but the better management by the Tether helped USDT to remain pegged to a $1 value.
USDC issuer company is providing a monthly basis report about its backend operations and reserved funds because the company wants to remain away from any kind of artificial panic or FUDs.