Circle Releases Third Report Verifying US Dollar Reserves for USDC Stablecoin Tokens
Circle has released its third attestation report detailing its U.S. Dollar reserves for its USDC stablecoin. The attestation was completed by independent accounting firm Grant Thornton LLP, with the results of the report published on Circle’s blog earlier today.
The attestation report is accurate as of December 31, 2018 at 11:59 PM UTC. Here’s what the report states:
- USD Coin tokens issued and outstanding: 251,211,148 USDC
- US Dollars held in custody accounts: $251,211,209
In other words, the report details that Circle has sufficient US Dollars to match every outstanding USD Coin token, indicating that the token is fully backed 1:1 with the US Dollar.
The report echoes identical reports released in October, November, and December 2018. All three reports have now verified that Circle has sufficient US Dollar reserves to match the circulating supply of its USDC stablecoin.
This shouldn’t be a surprise, as Circle launched its USDC stablecoin to be a more transparent and reputable version of other stablecoins on the market. As USDC usage continues to grow, it’s becoming the preferred alternative to more controversial stablecoins like Tether.
Tether recently completed a third party audit that successfully verified its own US Dollar reserves, although some analysts continue to have a problem with Tether’s banking partnerships.
Meanwhile, USDC usage continues to expand. Yesterday, we reported that Binance was launching trading pairs with USDC and two other stable coins, for example. Earlier this week, another industry news outlet reported that USDC was “rapidly growing” and that the coin “may overtake Tether to become [the] top stablecoin” on the market.”
Over the past week along, the circulating supply of USDC rose $70 million. As we go to press on January 16, there are 361.1 million USDC in circulation. That’s still only a fraction of the 1.928 billion Tethers (USDT) in circulation. It’s also a number higher than the audited reserve amount on December 31, 2018. However, based on Circle’s previous audit history, which has come back with 1:1 reserves every time, it’s assumed that USDC has $70 million more in its bank to correspond with the higher circulating supply.
Here’s how Grant Thornton LLP sums up its report on USDC:
“As of the Report Date and Time, the issued and outstanding USDC tokens do not exceed the balance of the US Dollars held in custody accounts.”
You can view the full Grant Thornton LLP report attesting to USDC’s reserves for the month of December 2018 here: https://www.centre.io/usdc-transparency.
Grant Thornton LLP has performed monthly attestation reports on Circle’s USDC since October. The reports released in October, November, and December have all indicated that Circle’s USDC is backed 1:1 with valid US Dollar reserves.
With USDC supply continuing to rise throughout the month of January, it’s expected that this month’s report will come back clean once again as USDC solidifies its status as one of the most reputable stablecoins on the market.