Circle co-founder and CEO, Jeremy Allaire announced that Circle will be providing weekly reports on stablecoin reserves to the public through its cryptocurrency company, stablecoin.usd. Tether, which is based in Cayman Islands has released an assurance report about its stablecoin resources via MHA Cayman.
Circle CEO Says Firm’s Stablecoin Is a ‘Very Efficient Pipe Between Legacy Electronic Dollars and Digital Currency Dollars’
Tether and Circle, the largest stablecoin provider, would like to ensure that USDT and USDC are fully insured 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 shared also the USDC assurance reports and more 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. It can be used by customers as a bridge between legacy digital 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. The USDC backing is $12.8 billion in cash and $40.2 billion in U.S. Treasuries.
USDC makes up 3.95% in the $1.3 trillion cryptocurrency economy. USDC saw global trade volumes of $3 billion during the 24 hour period. Circle’s stablecoin is the second-largest fiat-pegged crypto token that’s tied to the value of the U.S. dollar.
Tether publishes MHA Cayman’s May 2022 Assurance report
Tether released an assurance report by MHA Cayman (an auditor previously 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? Comment below and let us know how you feel about the subject.
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