Circle’s USDC Stablecoin Receives Clean Audit Report; Fiat Backed Reserves Grow by Over 50%
The USDC stablecoin parent company, Circle, most recent audit report shows the firm is liquid enough to back its 1:1 token peg ratio against the dollar. According to the audit done by Grant Thornton, Circle’s operation is well balanced besides being supported by Financial Services giant, Goldman Sachs.
Back in October, Circle issued a circulating supply of 464,507,005 USDC crypto tokens; the firm currently holds $464,628,070 as backing funds. The difference shows that Circle holds $121,000 in excess stored as dollar reserves. Circle’s operation has grown by over 50% since the beginning of 2019. Earlier in the year, the reserves were barely at $300 million.
The latest attestation report from Grant Thornton LLP: USD Coin ($USDC) issued remain fully backed by US dollars held in reserve. Circulating supply reaches 464,507,005 USDC https://t.co/GPKaXc2KO2
— Circle (@circlepay) November 20, 2019
USDC Dominance; A Threat to Tether
The USDC stablecoin has picked up pace quite fast hence the abnormal growth in market share over the past few months. Some Analysts within the space have attributed a big part of this milestone to Coinbase; the crypto exchange allows users to convert fiat to crypto via the USDC at zero cost. Furthermore, a USDC ‘rewards’ program which offers users a 1.2% commission per annum on their USDC portfolio has attracted financial savvy crypto enthusiasts.
On the other hand, USDC competitors like Tether are struggling to fight the speculations around the instability of the so-called stablecoins. Reports within the crypto and blockchain arena have in the past claimed that the USDT reserves may actually not be sufficient to back the asset’s market cap of $4.1 billion. Other players in the stablecoin market include the Gemini dollar and Paxos standard, both of which are prospectus enough to displace Tether’s position in today’s crypto market.