The co-founder and CEO of Circle, Jeremy Allaire, has announced the cryptocurrency firm that issues the stablecoin usd coin plans to provide the public with weekly stablecoin reserve reports. Additionally, the company Tether has also released an assurance report on its stablecoin reserves via the Cayman Islands auditing company MHA Cayman.
Circle CEO Says Firm’s Stablecoin Is a ‘Very Efficient Pipe Between Legacy Electronic Dollars and Digital Currency Dollars’
The two largest stablecoin providers, Tether and Circle, want the public to be assured that tether (USDT) and usd coin (USDC) are fully backed by reserves. The latest assurances follow the recent terrausd (UST) de-pegging event, which saw UST drop from its once-stable $1 parity to today’s $0.06 per UST.
Following the event, Circle published a blog post on May 13, called “How to Be Stable,” which explained Circle’s USDC reserves are backed entirely in cash and short-dated U.S. Treasuries. After the blog post, a week later the co-founder and CEO of Circle, Jeremy Allaire, explained that the company will now provide weekly USDC attestations concerning the stablecoin’s reserves and liquidity.
“As promised a week ago, we are now providing weekly reports on USDC reserves and liquidity operations,” Allaire tweeted. Allaire also shared the USDC assurance report and further said: “Over the past week, we saw 8.6 billion USDC issued, and 6.3 billion USDC redeemed, with a net weekly increase in circulation of 2.3 billion USDC.” The Circle CEO added:
What makes USDC such a great product is that it’s easy to create and redeem, with seamless integration with the existing global banking system. As a result, customers are able to use it as a very efficient pipe between legacy electronic dollars and digital currency dollars.
Per the report, the usd coin (USDC) in circulation is 52.9 billion while Circle’s reserve backing count is $53 billion as of May 20, 2022. $12.8 billion of the USDC backing is in cash, while $40.2 billion is held in short-duration U.S. Treasuries.
Out of the entire $1.3 trillion crypto economy, USDC represents 3.95% and during the past 24 hours, USDC has seen $3 billion in global trade volume. Circle’s stablecoin is the second-largest fiat-pegged crypto token that’s tied to the value of the U.S. dollar.
Tether Publishes May 2022 Assurance Report Authored by MHA Cayman
This month, Tether published an assurance report written by the firm MHA Cayman, an auditor formally known as Moore Cayman. The report says Tether’s “consolidated total assets amount to at least USD 82,424,821,101 and the asset breakdown set out in the CRR is materially accurate.” MHA Cayman says it conducted attestation methods such as an ISAE 3000, an ISQC 1, and accountant responsibilities in accordance with the IESBA Code.
Tether is the largest stablecoin crypto asset today, as coingecko.com data shows there’s currently 73.2 billion USDT in circulation. The company’s transparency page indicates that the firm holds $78.4 billion in total assets on blockchains like Omni, Ethereum, Tron, EOS, Algorand, and more.
Tether’s market capitalization today equates to 5.44% of the $1.3 trillion crypto economy, and USDT has seen $31 billion in global trade volume over the last day. In fact, 47.71% of bitcoin’s (BTC) past 24 hours of trades were all paired with USDT, and 48.77% of all ethereum’s (ETH) swaps were paired with tether this weekend.
What do you think about Circle’s and Tether’s reserve backing assurance reports? Let us know what you think about this subject in the comments section below.