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Circle’s December 2022 Report Says USDC is Overcollateralized

Published 2023-01-30, 11:25 a/m
© Reuters.  Circle’s December 2022 Report Says USDC is Overcollateralized
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  • Circle’s collateralized assets are in surplus of the USDC in current circulation.
  • Collateralized assets are held in treasury bills, banks, and other securities.
  • Circle is consulting with stakeholders on ways to increase the adoption of USDC.

The USDC stablecoin issuer, Circle, has released its December 2022 report, as reviewed by the Grant Thornton accountancy group. The report reveals details of Circle’s overcollateralized assets backing USDC tokens. Altogether, the assets held by Circle are worth more than the $44.5 billion USDC tokens in circulation.

According to Circle, 44,553,543,212 USDC are currently in circulation. Meanwhile, the company holds $44,693,963,701 U.S. dollars in custody accounts. The assets include $23.5 billion held in 14 different U.S. Treasury bills and $48.9 million in cash. Both are in a reserve fund registered as a government money market fund. Circle also owns all the equity interests in the fund plus an additional $33 million due to the fund, offset by “timing and settlement differences.”

Circle’s other disclosed collateral for USDC are two batches of $10.5 billion held in different accounts. The first batch is stored in U.S. Treasury securities in a separate assets category, while the second batch is in other financial institutions.

The post Circle’s December 2022 Report Says USDC is Overcollateralized appeared first on Coin Edition.

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