Circle shifts part of USDC reserves into a BlackRock-managed fund

Circle has begun transferring reserves of the USD Coin (USDC) stablecoin into a special fund created by BlackRock and registered with the SEC.

“Initially we managed the USDC reserves to minimise risks (liquidity, counterparty, operational, reputational and so on) so that stablecoin holders could be confident that their assets are safe and can be exchanged 1:1 for US dollars at any time,” the firm said.

Circle Reserve Fund, under BlackRock Advisors, is a money-market fund registered under applicable rules. Its assets will consist of cash and short-term U.S. Treasury securities.

As the government securities mature, proceeds will be used to purchase new ones.

The custodian is Bank of New York Mellon. The institution already holds the bonds backing USDC’s reserves.

According to CoinGecko, the circulating supply is about 42.13 billion USDC. According to Circle‘s site, as of October 27 the assets backing the stablecoin were valued at $44.1 billion.

In July, co-founder and CEO Jeremy Allaire revealed details of the reserves of USDC. The initiative was aimed at strengthening trust in the asset amid industry problems following the Terra collapse.

In the same month the firm published the first monthly report on the status of USDC’s backing.

In November, Circle received a license to operate as a stablecoin issuer in Singapore.

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