Circle Restarts U.S. Treasury Purchases in BlackRock-Managed USDC Reserve Fund
Repurchase agreements will keep being part of the reserve fund, Circle’s chief financial officer said Wednesday during a company call.
Stablecoin issuer Circle Internet Financial has started buying U.S. Treasury bills as a reserve asset for its $28 billion USD Coin () after amid the U.S. debt ceiling standoff last month.
The (USDXX), which is managed by asset management giant BlackRock (BLK), has started “building up our direct holdings of Treasuries,” chief financial officer Jeremy Fox-Geen said Wednesday during a company call that CoinDesk attended.
The fund will also keep repurchase agreements () as part of the reserves, Fox-Geen added.
The development came after Circle the backing of its stablecoin last month to protect USDC from a potential fallout if the U.S. government failed to increase its ability to borrow and default on its debt.
CEO Jeremy Allaire said in early May that the firm would not hold bonds maturing beyond the end of the month. By June, CoinDesk reported that the reserve fund into involving systemically important banks such as Goldman Sachs, BNP Paribas, Bank of America and Royal Bank of Canada.
Eventually, U.S. lawmakers struck a deal to increase the nation’s debt limit and President Joe Biden the legislation on June 3, averting calamity on financial markets.
As of June 20, Circle added $2.2 billion of T-bills to the fund, while repos constituted some 90% of the fund’s $24.7 billion in assets, according to BlackRock’s website. The company held an additional $3.5 billion in , the “vast majority, over 90%” stored at the Bank of New York Mellon, Fox-Geen said.
Edited by James Rubin.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
What will the Fed’s rate cut mean for the global economy?
Share link:In this post: The Fed is set to cut interest rates for the first time since COVID, which will shake global markets, currencies, and commodities. A stronger dollar has crushed weaker currencies like the Japanese yen and Turkish lira, while central banks scramble to control inflation. Ray Dalio warns that the Fed’s decision could worsen the US debt problem and spark more political chaos ahead of the election.
With $SHIB and $DOGE Leading, Is $PEPE Set to Join the Rally?
Crypto investment and entrepreneurship: How to identify the base color of RWA projects?
VIPBitget VIP Weekly Research Insights
Liquid staking emerged after Ethereum transitioned from a proof-of-work to a proof-of-stake mechanism. Its primary goal is to enhance asset utility by allowing users to earn staking rewards while maintaining the liquidity of their staked positions. Currently, mainstream liquid staking protocols allow users to stake their assets in exchange for liquid staking tokens (LSTs). For instance, by staking ETH on platforms such as Lido, users receive stETH tokens. This approach is commonly referred to as "liquid staking derivatives" (LSDs). Since Binance hinted at collaborating with Sanctum to launch the Solana liquid staking token BNSOL, Sanctum's governance token CLOUD has gained significant attention, rising despite unfavorable market trends. On September 5, Bybit announced its partnership with Solayer to launch bbSOL. Additionally, major exchanges have unveiled plans to introduce Solana LST tokens. EigenLayer also began its second season of airdrop claims this week, with its governance token EIGEN potentially circulating by the end of September. The LSD and restaking sectors are gaining quiet momentum, potentially setting the stage for a new wave of hype around restaking within the SOL ecosystem.
Trending news
MoreCrypto prices
More
