Coinbase president Emilie Choi expects USDC’s up-to-date reserves policy to be in full effect by September.
Coinbase president and COO, Emilie Choi, has announced that the reserves backing the stablecoin USD Coin (USDC) will be consolidated into cash and U.S. government treasuries.
An Aug. 22 blog post from CENTRE Consortium, the entity that was collaboratively established by top U.S. crypto exchange Coinbase and blockchain financial providers firm Circle that issues USDC, stated that USD Coin’s reserves will quickly be solely held in “cash and short duration U.S. Treasuries.”
On Twitter, Choi attributed the change in policy to the backlash towards USDC’s reserves expanding beyond cash, cash equivalents, and U.S. Treasuries in May. The modifications to USDC’s reserves had not been reported until July, exacerbating public concern regarding the stable coin’s backing.
Choi emphasized that the new policy will be in effect by September, noting that USDC’s subsequent two attestation experiences proceed to point out a diversified portfolio for the security token’s reserves.
“These changes are being implemented expeditiously and will be reflected in future attestations by Grant Thornton,” the blog post added.
Last month’s USDC attestation report for May revealed that the forex was backed 61% by “money and money equivalents,” and 12% by U.S. treasuries.
Certificates of Deposit denominated in U.S. dollars represented 13% of the token’s backing, whereas industrial paper comprised 9%, and company bonds accounted for 5%. Municipal bonds additionally represented 0.2% of the stablecoin’s backing.
Since its launch in September 2018, USD Coin has grown to boast an almost $28 billion market cap and expanded throughout 5 completely different blockchains.