The reserves of the stablecoin USD Coin (USDC) from the Center consortium of Circle and Coinbase will be made of only cash and Treasury bills issued by the US Treasury.
According to the May attestation report, cash and cash equivalents accounted for 61% of the $22.2 billion in USDC issuance.
The issuer has sent 13% of reserves to certificates of deposit and 12% to securities of the US Treasury with a maturity of more than three months. The rest of the amount was invested by the Center consortium commercial securities, corporate and municipal bonds.
We should remember these changes will take effect at the end of September, according to Coinbase CFO Emilie Choi, as a result, the attestation reports for June and July will not reflect this move.
She has admitted the company is responsible for the incorrectness of the information on the Coinbase website according to which each USDC is backed by “$1 in a bank account.” Now the exchange has changed the definition of stablecoin is shows.