Circle’s Fiat Reserves Back over 246 Million of USDC Tokens

Circle, the company behind US dollar-pegged stablecoin USDC, released its sixth audit report, which was signed by the leading auditor firm Grant Thornton. The “attestation report” states that the Goldman-funded Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term has sufficient capital to back each individual token on a 1:1 basis.

According to the report published today, 246,586,876 USDC tokens were issued and outstanding on March 31, 2019, while the company holds $246,590,714 in deposits. The firm then concluded that Circle’s assets show an excess of $3,838 in fiat reserves.

Compared to previous reports, the figure nearly doubled from $127 million in November 2018 but was down 21 percent from $307 million reported earlier in January’s report.

The lack of a clear audit of reserves in the crypto ecosystem has caused much discussion and controversy, particularly with regards to so-called stablecoins since they effectively act as a custodian for exchanges that are not provided traditional banking services.

Tether concedes its dominance

Onboarding a major accounting firm that can be held accountable by third parties for financial information to engage in an audit of a crypto token is also a notable success for Circle’s initiative. The move is important due to nagging questions around Tether’s major stablecoin, which has been dogged by speculation that it holds insufficient capital to support its over $2.6 billion market cap of USDT.

USDC has widened its percentage of total Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term supply in circulation to nearly 10 percent. The gains come as Tether conceded its dominance to other alternatives including Circle’s coin, Paxos Standard, and the Gemini Dollar. The most controversial cryptocurrency saw its market share falling to below 70 percent in March, compared with over 95 percent earlier in December 2018. At the beginning of 2018, the coin had control over the entire stablecoin ecosystem.

Coinbase has also boosted USDC dominance by making it the only way to convert fiat to crypto without fees on its institutional platform, Coinbase Pro.