The co-founder and CEO of Circle, Jeremy Allaire, has announced the cryptocurrency firm that issues the stablecoin usd coin plans to provide the public with weekly stablecoin reserve reports. Additionally, the company Tether has also released an assurance report on its stablecoin reserves via the Cayman Islands auditing company MHA Cayman.
Circle CEO Says Company’s Stablecoin Is a “Highly Effective Pipeline Between Legacy e-Dollar and Digital Currency Dollars”
The two largest stablecoin providers, Tether and Circle, want the public to be assured that the tether (USDT) and USD coin (USDC) are fully backed by reserves. The latest assurances follow the recent terrausd (UST) unpeg event, which saw the UST drop from its once stable parity of $1 to $0.06 per UST today.
Following the event, Circle published a blog post on May 13, called “How to Be Stable,” which explained Circle’s USDC reserves are backed entirely in cash and short-dated U.S. Treasuries. After the blog post, a week later the co-founder and CEO of Circle, Jeremy Allaire, explained that the company will now provide weekly USDC attestations concerning the stablecoin’s reserves and liquidity.
“As promised a week ago, we are now providing weekly reports on USDC reserves and liquidity operations,” Allaire said. tweeted. Allaire also shared the USDC assurance report and additionally mentioned“Over the past week, we have seen 8.6 billion USDC issued and 6.3 billion USDC redeemed, with a net weekly increase in circulation of 2.3 billion USDC.” The Circle CEO added:
What makes USDC such a great product is that it’s easy to create and redeem, with seamless integration with the existing global banking system. As a result, customers are able to use it as a very efficient pipe between legacy electronic dollars and digital currency dollars.
According to the report, the USD (USDC) coin in circulation is 52.9 billion while Circle’s reserve count is $53 billion as of May 20, 2022. $12.8 billion from USDC support are in cash, while $40.2 billion are held in the United States for short periods. Treasures.
Out of the entire $1.3 trillion crypto economy, USDC represents 3.95% and during the past 24 hours, USDC has seen $3 billion in global trade volume. Circle’s stablecoin is the second-largest fiat-pegged crypto token that’s tied to the value of the U.S. dollar.
Tether Releases May 2022 Insurance Report by MHA Cayman
This month, Tether released an assurance report written by MHA Cayman, an auditor formerly known as Moore Cayman. The report states that “Tether’s total consolidated assets are at least $82,424,821,101 and the asset allocation shown in the CRR is materially accurate.” MHA Cayman says he has applied attestation methods such as an ISAE 3000, an ISQC 1 and accounting responsibilities in accordance with the IESBA code.
Tether is the largest stablecoin crypto asset today, as coingecko.com data shows there’s currently 73.2 billion USDT in circulation. The company’s transparency page indicates that the firm holds $78.4 billion in total assets on blockchains like Omni, Ethereum, Tron, EOS, Algorand, and more.
Tether’s market cap today equals 5.44% of the $1.3 trillion crypto economy, and USDT saw $31 billion in global trade volume in the past day. . In fact, 47.71% of bitcoin (BTC) trades in the past 24 hours were all matched with USDT, and 48.77% of all ethereum (ETH) trades were matched with tether this weekend.
