Circle is transitioning USDC reserves to 100 percent cash and short-term U.S. Treasury bonds in order to be reflected in the dollar digital currency’s attestation in September.
Circle is a financial technology firm that makes digital currencies and public blockchains accessible to companies of all sizes, allowing them to implement innovative payment methods, commerce processes, and financial applications globally. USD Coin (USDC) is a regulated and fully reserved dollar digital currency that has shown significant growth in recent years. USDC is operated mainly by Circle. The company’s services and activities are transforming the market, setting off a new generation of financial services and commerce applications through programmable internet commerce.
Circle and USDC are regulated by the permissible investment rules under state money transmission law. Consumer protection is ensured by these regulations and by the management standards of the Centre Consortium, a partnership between Circle and Coinbase. They also ensure constant 1:1 dollar liquidity for USDC.
The continuously expanding use of digital currencies introduced them to the national and global financial market infrastructure. Global policymakers and national regulatory agencies are increasingly addressing the subject.
“As industry and government work together on the appropriate future supervisory standards, Circle is committed to maintaining or exceeding those standards, driving innovation, and building reliable, trusted, secure, and compliant infrastructure for dollars on the internet,” said Jeremy Allaire, Co-founder and CEO of Circle.
“As regulators consider the implications of digital currencies growing from $100 billion to potentially supporting trillions in economic activity in the coming years, supervisory standards are a necessity,” said Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle. “We welcome the conversation and opportunity to play a leading role in the advancement of commerce and economic activity on the internet.”