The asset collapse comes as crypto companies and their finances come under increasing scrutiny amid the ongoing cryptocredit crisis.
Circle Internet Finance has released a detailed (albeit unaudited) breakdown of the company’s U.S. dollar token (USDC) reserve assets, which shows $42.1 billion in short-term U.S. government bonds and $13.6 billion in cash.
Asset details published by the company in a blog post on Thursday showed that as of June 30, Circle held $42.1 billion in U.S. Treasury bonds with an average maturity of 44 days and the latest maturity date of September 29. A bond is considered short-term when its maturity date is less than three months. The document also lists individual identifiers for the bonds, so-called CUSIP numbers.
According to the filing, Circle also holds $13.6 billion in cash at U.S. regulated financial institutions (Bank of New York Mellon, Citizens Trust Bank, Customer Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, Bank Gate Bank and Bank of America ).
Circle’s claimed $55.7 billion in assets is slightly higher than the 55.4 billion USDC tokens in circulation. USDC should maintain a 1:1 peg to the US dollar. Jeremy Fox-Geen, chief financial officer of
, said in the post: “As U.S. policymakers work to develop federal regulations for stablecoins, Circle continues to respond to new industry innovations and what USDC holders within our ecosystem want to see. , increase our transparency."
The report is unaudited, but it provides a more detailed glimpse into the reserve assets backing the stablecoin, which is the second-largest currency by market capitalization with a circulating supply of $55 billion, according to the filing.
The report comes amid an ongoing credit crisis in the cryptocurrency market, triggered by the multi-billion-dollar implosion of the Terra blockchain in May when the third-largest stablecoin decoupled from the U.S. dollar. The financial health of
cryptocurrency companies is coming under increasing scrutiny, with various cryptocurrency lenders and investment firm facing liquidity issues and filing for bankruptcy protection.
While stablecoins are supposed to maintain a stable price, anchored to assets such as the U.S. dollar, several stablecoins lost their price pegs after Terra’s implosion, including Tron’s USDT and Neutrino Dollar (USDN). The price peg to USDT of Tether, the largest stablecoin with a market capitalization of $66 billion, also briefly swung.
Since May, USDC’s market share has increased at the expense of USDT. While USDT saw $17 billion in redemptions, USDC gained $7 billion as holders flocked to assets considered safer, according to cryptocurrency market data tracker CoinGecko.
