Circle will convert all its reserves into US dollars

Circle will convert all its reserves into US dollars

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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