USDC only 61% backed by cash and equivalencies

The developer behind the world’s most prominent stablecoin, USDC, has vowed to make sure that the token is 100% backed by cash and short-term US Treasuries.

In a recent announcement, Circle revealed that only 61% of all tokens were backed by cash and cash equivalents, undermining the value of the coin.

However, the USDC price has remained unchanged and pegged to the US dollar. The company will use the upcoming September attestation to demonstrate that all USDC reserves are backed by short-term US government Treasuries as well as cash, a statement on Sunday explained.

This comes in the broader context of Circle planning to go public through the use of a special purpose acquisition corporation, Concord Acquisition Corp. The move could put the company’s potential value at $4.5bn.

While USDC and stablecoins have come under some scrutiny by central banking bodies, Circle does not want to shy away from mainstream banking but rather embrace it.

Circle is looking to become a full-reserve national commercial bank which could be under the supervision of the main financial regulators, such as the US Federal Reserve, Treasury Department, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp.

In the meantime, you can use USDC and other cryptocurrencies for entertainment at casino sites such as Bitcasino, 1xBit and FortuneJack.

Source

Updated: 08/24/2021 — 13:00