US Stablecoin Issuers Publish New Details on US Dollar Reserves
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This week, Circle, the issuer of USDC – a cryptocurrency “stablecoin” with each unit backed 1:1 by U.S. dollars – published its latest reserve attestation issued by a U.S. public accounting firm. According to a blog post, Circle’s reserve attestations will now include “a breakdown of dollar-denominated reserve assets, which are all held in the care, custody and control of U.S.-regulated financial institutions and in line with laws and guidelines from our U.S. state money transmission regulators.”
The blog post notes that “[w]hile public disclosure of reserves is not currently a regulatory requirement for stablecoins or privately issued digital currencies, we want to continue leading the sector with greater transparency … especially as the role of dollar digital currencies grows in importance in the global financial system.” According to the blog post, “USDC in circulation has grown more than 2,600% since the beginning of 2021.” This week, Circle also announced a new initiative with a major U.S. financial services firm to “use USDC to facilitate crypto-to-fiat conversions” and “test using USDC as a means for card issuers to more easily settle payments.”