Accounting Firm Grant Thornton LLP Releases Its Monthly Report On Circle’s USDC Tokens
Accounting Firm Grant Thornton LLP Releases Their Monthly Report On USDC Tokens
In a market plagued with unscrupulous individuals, keeping faith in the industry is hard. The precariousness of the situation has not been lost on most tokens. To combat this growing concern, coins have started to work with third party's to ensure independent reporting. This is a practice that Circle has inculcated to ensure transparency and boost confidence
For the uninitiated, Circle has been promoting their USDC, short for USD Coin. The alt-coin has been promoted to enable free movement and trade within the crypto market. While built as an ERC20 compliant coin on the basis of the Ethereum blockchain, it is an open source project. The main attraction is that, as the service's website explains, “the service works within US money transmission laws, uses established banks and auditors and runs on blockchain technology via smart contracts. ”
Yesterday, on the 15th of Feb, Grant Thornton LLP, a top accounting services firm, issued their forth monthly attestation report on the US dollar reserves that are currently backing its USDC pool. The independent scrutinization process showed that all seems to be as expected. At the time of reporting the accountants noted that there was the expected equilibrium between Circle’s total number of issued and outstanding USDC tokens. The report examined data until the end of last month and noted:
“USD Coin (“USDC”) tokens issued and outstanding = 307,793,724 USDC US Dollars held in custody accounts = $307,848,312”
This is extremely important as the blockchain firm has stressed that all their USDC tokens are always backed by an equal number of US dollars, in their custody at all times.
The report mentioned that as per their audit, data had revealed that no excess coins will be in circulation, apart from those dollars already in the company's possession. Yet, the firm noted, the total dollars in reserve could “exceed coins in circulation due to the timing of the audit”. This might lead to stray instances of transactions where coins may have been minted after the publication of the report, as money might have been deposited in advance.
This sort of focus on transparency and accountability with regards to financial information needs to be applauded. Circles commitment to their customers is indeed a beacon of hope for the industry and the baseline of standards that should be expected from them. One can only hope that other crypto businesses take a leaf out of how Circle has conducted themselves and make the industry respectable again.