USDC stablecoin is ‘solely’ backed by cash, T-bills (Cryptocurrency:USDC-USD)

Circle’s reserve assets for its USD Coin (USDC-USD), the second-largest stablecoin by market cap, are fully backed by cash and short-term Treasury debt, according to the stablecoin issuer’s first monthly asset breakdown.

Specifically, Circle’s reserve assets were supported by $13.6B in cash and $42.1B in 3-month Treasury bills with an average expiration of 44 days, its unaudited report showed as of June 30.

The company’s total reserve assets held on behalf of holders of USDC (USDC-USD), which is designed to be pegged to the U.S. dollar, stood at $55.7B, up slightly from 54.9B coins in circulation.

Its cash pile was held at a slew of U.S.-regulated financial institutions, including Bank of New York Mellon (BK), Citizens Trust Bank, Customers Bank (CUBI), New York Community Bank (NYCB), Signature Bank (SBNY), Silicon Valley Bank, Silvergate Capital (SI) and U.S. Bancorp (USB), according to the report.

Circle’s move to enhance its disclosures comes as it “continues to increase our transparency based on new industry innovations and what USDC holders within our ecosystem would like to see,” CFO Jeremy Fox-Geen said in the blog post.

In a backdrop of the growing financial contagion effect in the crypto market stemmed from collapse of algorithmic stablecoin TerraUST (UST-USD) and its sister token Luna (LUNA-USD), “we are working toward providing daily disclosure as well as securing permissions from our custodians to disclose the amount they each hold,” Fox-Green said.

Towards the end of June, Circle teamed up with New York Community Bancorp to custody USDC reserves.