Circle Starts Moving USDC Reserves Into a Blackrock-Managed Fund, Firm Expects to Be ‘Fully Transitioned’ Next Year – Bitcoin News

According to the crypto firm Circle Internet Financial, the company is “deepening” its partnership with the world’s largest asset manager Blackrock. Circle disclosed that it has started to transfer USDC reserves into a Blackrock-managed fund that’s registered with the U.S. Securities and Exchange Commission (SEC).

Circle Deepens Relationship With the World’s Largest Asset Manager Blackrock

Mid-April 2022 Circle announced that Circle had entered into an investment agreement. The deal included Blackrock Inc. Fin Capital, Fidelity management and research, Marshall Wace LLP, Marshall Wace LLP, Blackrock Inc. and Fin Capital. The investment was a $400 million funding round and during the announcement, Blackrock explained how Circle and the New York-based multi-national investment company would expand the two companies’ existing relationship. It was also revealed that Blackrock would be used by Circle for “managing significant assets for the reserves that back USDC.”

On November 3, 2022 Circle announced that it would deepen its partnership with Blackrock. The company has begun to transfer USDC reserve funds into Blackrock-managed funds. “Through our partnership with Blackrock, we have begun investing in the Circle Reserve Fund to manage a portion of the USDC reserves,” Circle’s chief financial officer (CFO) Jeremy Fox-Green explained. Circle’s CFO also added:

Our expectation is that the remaining reserve components will remain approximately 20 percent cash and 80 percent short-duration U.S. Treasuries.

The investment objective of the Circle Reserve Fund (USDXX) is to “seek current income as is consistent with liquidity and stability of principal.” Circle is the only investor and the fund invests in “at least 99.5% of its total assets in cash, U.S. Treasury bills, notes, and other obligations.” According to Circle’s announcement, the company hopes to be fully transitioned by the end of March 2023.

Number of USDC Stablecoins in Circulation Slides Significantly, Circle’s EURC Token to Be Supported by Solana Next Year

Circle says the fund is held by Bank of New York Mellon as the financial institution has already been a custodian for USDC’s reserves that are comprised of U.S. Treasuries. Circle’s announcement on Nov. 3 follows the number of USDC in circulation decreasing rapidly during the last few months.

In mid-June Circle also announced that it had launched a stablecoin backed in euro called the euro coin (EURC). Marcus Boorstin, Circle’s director of engineering, announced this week at a Solana-centric conference that EURC would be minted on Solana next year.

This story contains tags
Asset manager, Bank of New York Mellon, Blackrock Circle, BlackRock Inc. Blackrock-managed bond, Blackrock Inc. Circle, Circle CFO Circle Reserve Fund EURC, Euro-backed Stablecoin Jeremy Fox Green, Marcus Boorstin Reserves, Stablecoin. Stablecoin assets, US Treasury, USDC.

What do you think about Circle’s blog post about deepening its relationship with the world’s largest asset manager Blackrock? Comment below and let us know how you feel about the subject.

Jamie Redman

Jamie Redman is the News Lead for News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been an active member ever since. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for News, with over 6,000 articles on disruptive protocols.

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