Circle Releases Sixth Audit Report About its USDC Stablecoin Verifying Its US Dollar Reserves
Circle has recently released a new audit report related to its stablecoin USD Coin (USDC). The information was released by Circle in a blog post.
The report signed by the auditing firm Grant Thornton shows that the firm has enough capital to back each USDC coin released to the market on a 1:1 basis.
Circle Releases New Report
In the recent report, there were 246,586,876 USDC tokens issued and outstanding as of March 31, 2019. Meanwhile, the company had $246,590,714 in deposits. This shows that Circle has an excess of $3,838 in fiat reserves. This shows that the number of USDC coins increased compared to November when there were $127 million.
Stablecoins expanded in the cryptocurrency market in 2018. Investors were searching for reliable and secure coins to hedge against volatility in the market. In general, these stablecoins are pegged 1:1 to a specific fiat currency. Most of the stablecoins in the space are pegged to the US dollar.
Tether (USDT), the largest and most popular stablecoin in the space, has been involved in different controversies regarding its funds and the coins issued. This is why there was an increase in the number of stablecoins released to the market.
Thus, Circle’s initiative to work with an auditing firm and control the funds that it has is a positive thing for the virtual currency market. USDC has also increased its presence in the market to 10% of the stablecoin share. USDT has a market cap of $2.6 billion and it is the 8th largest digital asset.
There are other stablecoins such as the Gemini Dollar (GUSD), Paxos Standard (PAX), DAI, or TrueUSD (TUSD). Coinbase boosted USDC dominance allowing users to convert fiat currencies into crypto without fees on the trading platform.