USDC to consolidate capital in cash and Treasury bonds
Emilie Choi, president of Coinbase, announced that the new policy will take effect from September
Coinbase President and Chief Operating Officer Emilie Choi reported that the reserves that support the USD Coin (USDC) stablecoin will be fully secured in cash and US government treasury bonds.
This was established by the CENTER consortium, in collaboration with Coinbase and the financial services company, blockchain Circle, responsible for issuing the USD Coin, who declared that “it will soon be held entirely in cash and US Treasury bonds of short duration.”
Choi used her Twitter account to report the reasons for the policy change, which is a consequence of “a backlash against USDC reserves that expanded beyond cash, cash equivalents and bonds from the US Treasury.”
She also indicated that they had not been able to report the changes originated in the cryptocurrency reserves and that “exacerbated public concern regarding the support of the stablecoin.” They admitted the mistake in not updating the information on the website in July when the Circle company first included a more diversified investment group.
The Coinbase president noted that the policy change will take effect from September, highlighting that the next two certification reports will continue to publish a “diversified portfolio for stable token reserves.”
For the month of May, the USDC certification report showed that the currency was backed 61 % by “cash and cash equivalents and 12 % by US Treasury bonds.”
M. Rodríguez
Source: ezanime.net
