Circle Financial Inc

Circle is taking over the crypto industry and it is partnering with Trad fire giant to foist its coin on all of us whether we like it or not. Circle Financial Inc is the company behind USDC stablecoin. The CEO and co-found is a chap called Jeremia Liar who has extensive experience in founding technology companies. Circle originally began with the idea of integrating Bitcoin payment into traditional infrastructure and wanted to become the base layer for a new financial infrastructure. The company launched USDT in September of 2018 right in the depth of the last crypto winter.

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At that time, there was not much demand for stablecoin or crypto in general for that matter. However, with the advent of Defi summer in 2020 and the NFT maniac in 2021, USDC uses when off the roof. It when from a CMC market cap ranking of 22 in early 2019 to its currency rank of 5. Part of the reason why USDC is been able to achieve this growth is the trust that was been placed in reserve backing the coin in circulation. USDC is fully backed one-to-one with US dollars and these are redeemable at any time. When it comes to those reserves, 80% are kept in treasury with 3-month maturity. Are the most liquid of treasury which means the conversion into cash is down completely. The remaining 20% of the reserve is held in cash at 8 different regulated banking partners across the US. Something I didn't know is that these banks as been chosen based on the social impact that the deposit could have in underrepresented minority communities.

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You should know that back the end of this year, all of these reserves will be moved away from these banks into Circle reserve fund which is managed by Blackrock and custody by the bank of New York. It is very scary that Black Rock will be able to control the reserves for the second-largest stablecoin. The report also talks about the numerous license that Circle has have both within the US and abroad. They talked about those monthly attestations that Circle undertakes with accountant Grant Thornton. It also undergoes a yearly audit by the same firm and has published this for the past years.

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In the future, the BlackRock Circle reserve funds will be audited by Deloitte. Circle reserve fund will be a full SEC money market fund that will offer daily disclosure of the company's reserves. What this shows me is that the forks at Circle have attempted to go all in transparency and regulations. This is because they know that it is a unique selling point over their mighty competitor in the space which is Tether. As you know that there have been constant concerns about the reliability of Tether reserves. A lot has been done in other to dispel many of these concerns but Tether has always stopped short of a full audit.

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