According to the most current attestation report provided by Circle, about $12.79 billion, which represents around 30% of stablecoin USDC reserves, are apparently placed in a government money market fund known as the Circle Reserve Fund, which is backed by BlackRock.
According to the daily update page on BlackRock’s website, the amount of USDC reserves that are now held in the Circle Reserve Fund has climbed to around $28.6 billion, which is equivalent to 65% of the total.
Crypto analyst John Paul Koning tweeted
He referred to it as a victory for USDC customers on account of the fact that they would now be able to get frequent updates from BlackRock, which will also raise the level of openness.
Since the month of November, Circle has entrusted BlackRock with the management of a significant percentage of the USDC stablecoin’s reserve holdings. A specialized money market vehicle developed by BlackRock and given the name The Circle Reserve Vehicle, it makes investments in US Treasuries with short maturities.
In April of 2018, BlackRock participated in a fundraising round for USDC issuer Circle that was worth $400 million. Since that time, Blackrock was going to take over as the principal asset manager of USDC cash reserves and work with Circle to investigate potential capital market uses for USDC.
Over two-thirds of the $44 billion stablecoin’s assets are now managed by BlackRock, and 80% of the stablecoin’s reserves are kept in U.S. Treasury securities. The assets of the fund consisted of 12 US treasury bills as of the 30th of November in 2022. Circle had $43.4 billion in USDC reserves as of that date, which was sufficient to maintain the 43.23 billion USDC that were in circulation.
Compiled by Coinbold