Home CryptocurrencyAltcoin Circle is starting to pour money into its reserve fund and aims to fill it in 2023

Circle is starting to pour money into its reserve fund and aims to fill it in 2023

by SuperiorInvest

Circle, issuer for USD Coin (UDSC), has announced that it has now started investing part of its funds in the Circle Reserve Fund, previously created in cooperation with the world’s largest asset manager, BlackRock. The move was part of Circle’s effort to minimize risks and guarantee its holders the exchangeability of their coins.

According to the corporation blog post as of November 3, the Circle Reserve Fund is a Rule 2a-7 registered government money market fund managed by BlackRock with a portfolio consisting of cash and short-term US Treasuries.

The fund is only available to Circle. The company will use a portion of its proceeds to purchase new government bonds and place them in a reserve fund managed by the Bank of New York Mellon. The process reportedly began on November 3 and is expected to conclude by the end of Q1 2023.

Circle Reserve Fund complies with the Investment Company Act of 1940, including that it is subject to an independent board and will report daily on portfolio holdings.

Related: BNY Mellon, America’s oldest bank, launches crypto services

USDC is still not that popular across US borders. According to a recent Coinbase statement cryptocurrency, three times more USDC is currently being bought for US dollars compared to other currencies. However, the US dollar-pegged cryptocurrency remains the second largest stablecoin by market capitalization within Tether (USDT).

In September, Circle announced that it would soon launch its stablecoin through five other networks including Polkadot, Optimism, Near, Arbitrum and Cosmos. Support for most of these blockchains will launch by the end of 2023, while USDC on Cosmos will launch in early 2023.

Early November Circle received approval in principle for a major payments institution license in Singapore that would allow it to issue cryptocurrencies and facilitate both domestic and cross-border payments.

Source Link

Related Posts

%d bloggers like this: