According to the latest reports, it seems that USDC, which was launched by Coinbase and Circle, will not be backed by US dollars only.
Coinbase president and COO Emilie Choi said that all of the firm’s USDC reserves would be backed by a combination of cash and short-duration US Treasury bonds starting September.
This announcement comes after it’s been said that not all the USDC were backed by US dollars held in a bank account.
New disclosure on USDC
The current disclosure now states the following:
“Each USDC is backed by one dollar or asset with equivalent fair value, which is held in accounts with US regulated financial institutions.”
In the recent announcement, Choi brings some updates and clarifications on the reallocation of the assets backing USDC.
“Starting September 2021, USDC reserves will be held in cash and short-duration US government treasuries. When Circle shared their May report about USDC reserves in late July (which included a more diversified pool of investments for the first time) we should have moved faster to update statements like that on our website. That was a mistake and Coinbase takes ownership for that.”
Coinbase in the news
Coinbase made headlines again recently when it’s been revealed that Coinbase’s Brian Armstrong just made an important announcement on his social media account. Check it out below.
We recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings. And we’ll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the cryptoeconomy matures.
— Brian Armstrong (@brian_armstrong) August 19, 2021
The crypto space has been boosting digital assets mass adoption for a while now, and things continue to go great. Stay tuned for more news and keep your eyes on the crypto market.