Circle, the company behind the popular DeFi stablecoin USDC, revealed that every single USDC is backed by real assets. Grant Thornton accountants verified that the amount of funds held by Circle was equal to exactly one dollar for every USDC in circulation.
Apparently, more than 60% of the funds are held in cash. 25% of the total reserves are split between Yankee Certificate of Deposits, which is a type of savings account denominated in dollars. The remaining funds are split between commercial paper and corporate bonds.
In a recent blog post, Circle also outlined that their core values are transparency and accountability, which will strengthen USDC’s role as a trustworthy stablecoin!
This makes USDC more transparent than its main competitor Tether, which has been a long and lasting source of FUD.