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ICYMI: USDC Reserves…

ICYMI is an ongoing sequence of weblog posts memorializing necessary Twitter threads from thought leaders at Coinbase and past. On this thread from 08/22/2021, Coinbase COO and President Emilie Choi clarifies the state of affairs surrounding USDC reserves.

@emiliemc

Fast replace on USDC. Beginning September 2021, USDC reserves can be held in money and short-duration US authorities treasuries. This is the strategy we wish for USDC reserves.

USDC has at all times been absolutely backed by reserves equal to or larger than the USDC in circulation, giving customers the flexibility to at all times redeem 1 USD Coin for US$1.00.

We all know that plenty of prospects get USDC on Coinbase, and we beforehand stated that each USDC is “backed by a greenback in a checking account.” Our language might have been clearer right here.

When Circle shared their Might report about USDC reserves in late July (which included a extra diversified pool of investments for the primary time) we should always have moved quicker to replace statements like that on our web site. That was a mistake and Coinbase takes possession for that.

In any case, the adjustments within the funding portfolio for USDC reserves started in Might 2021 and won’t prolong previous September.

Centre, alongside Circle, will make sure that the USDC investments revert again to a extra conservative funding profile by the top of September.

So to be clear, the subsequent 2 attestation reviews (June and July) for USDC reserves will present a diversified funding portfolio. It will reverse starting with the month of August.

We’re excited in regards to the continued progress and adoption of USDC, which has develop into the biggest regulated stablecoin on this planet, with a market cap of practically $28B.

*We’ve added hyperlinks the place applicable. You may see unique thread here.


ICYMI: USDC Reserves… was initially printed in The Coinbase Blog on Medium, the place individuals are persevering with the dialog by highlighting and responding to this story.

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