Circle restarts buying US treasury bonds as USDC reserve assets

Circle resumes purchasing US treasury bonds as reserve assets for USDC.

According to CoinDesk, the Circle Reserve Fund, managed by BlackRock, has begun purchasing US Treasury bonds as part of its $28 billion USDC reserve assets. Circle CFO Jeremy Fox-Greene stated during a company conference call that they “have begun building direct holdings in Treasuries” and added that the fund will also retain repurchase agreements as part of its reserves.

This development comes after Circle adjusted its reserve asset structure for its stablecoin USDC last month to protect it from potential impacts of a US debt default. CEO Jeremy Allaire stated in early May that the company would not be holding any Treasuries maturing after the end of this month. As of June, according to CoinDesk, the reserve fund has shifted all its assets to tri-party repurchase agreements involving systemically important banks such as Goldman Sachs, BNP Paribas, Bank of America, and Royal Bank of Canada.

Reference: https://www.coindesk.com/markets/2023/06/21/circle-restarts-us-treasury-purchases-in-blackrock-managed-usdc-reserve-fund/

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