The issuer of the USDC stablecoin, Circle, has decided to convert its entire reserve into cash.
Circle will only support USDC with cash dollars and short-term US Treasuries. According to the blog entry on the blog, this decision was made to ensure full transparency and compliance with all regulatory requirements.
Last month, Circle released a collateral report on USDC. The US dollar accounted for only 61% of the reserve, which caused a mixed reaction from experts and the community. That could hamper Circle's plans to go public in a $4.5 billion SPAC deal this year.
Last week, a message appeared on the Circle blog that the company intends to become a federal bank, and that USDC will increase in circulation.
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