{"id":78924,"date":"2023-05-18T11:40:02","date_gmt":"2023-05-18T08:40:02","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=78924"},"modified":"2025-09-11T08:08:54","modified_gmt":"2025-09-11T05:08:54","slug":"usdc-issuer-channels-8-7-billion-into-repos-as-a-hedge-against-a-us-default","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/usdc-issuer-channels-8-7-billion-into-repos-as-a-hedge-against-a-us-default\/","title":{"rendered":"USDC issuer channels $8.7 billion into repos as a hedge against a US default"},"content":{"rendered":"

The issuer USD Coin (USDC)<\/a> Circle transferred<\/a> $8.7 billion into backing for the stablecoin from T-Bill<\/span> maturing after May 31 into an overnight repo<\/a>.<\/p>\n

The reserves are managed by BlackRock Advisors through Circle Reserve Fund.<\/p>\n

As counterparties for the transactions, the structure selected BNP Paribas, Morgan Stanley, Goldman Sachs, Bank of America, Barclays, Credit Agricole, Wells Fargo and Royal Bank of Canada.<\/p>\n

\n
\"image-305\"
Data: BlackRock.<\/figcaption><\/figure>\n<\/div>\n

The share of REPO transactions in Circle Reserve Fund reached 35.12%.<\/p>\n

\"image-306\"
Data: BlackRock.<\/figcaption><\/figure>\n
\n

“Although this plan has been in place for many months, the inclusion of these highly liquid assets also provides additional protection for USDC reserves in the unlikely event of a US government default,”<\/em> explained CoinDesk<\/a> spokesperson Circle.<\/p>\n<\/blockquote>\n

Earlier, Circle CEO Jeremy Allaire said the company revised <\/a> the collateral structure for the stablecoin in favour of short T-Bills to hedge against such risks.<\/p>\n

The situation has escalated amid the no progress<\/a> on raising the US debt ceiling. The Treasury’s funds could run out by June 1, 2023<\/a>.<\/p>\n

Tether Limited said<\/a> it is considering increasing the share of REPO in collateral for the stablecoin.<\/p>\n","protected":false},"excerpt":{"rendered":"

Circle, the issuer of USD Coin (USDC), transferred $8.7 billion into the stablecoin’s collateral from T-Bills maturing after May 31 into an overnight repo.<\/p>\n","protected":false},"author":1,"featured_media":78925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[865,1220,1224,807,910],"class_list":["post-78924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blackrock","tag-circle","tag-macroeconomics","tag-stablecoins","tag-usdc"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=78924"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78924\/revisions"}],"predecessor-version":[{"id":78926,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78924\/revisions\/78926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/78925"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=78924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=78924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=78924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}