Circle Restarts U.S. Treasury Purchases in BlackRock-Managed USDC Reserve Fund
Repurchase agreements will keep being part of the reserve fund, Circle’s chief financial officer said Wednesday during a company call.
Stablecoin issuer Circle Internet Financial has started buying U.S. Treasury bills as a reserve asset for its $28 billion USD Coin () after amid the U.S. debt ceiling standoff last month.
The (USDXX), which is managed by asset management giant BlackRock (BLK), has started “building up our direct holdings of Treasuries,” chief financial officer Jeremy Fox-Geen said Wednesday during a company call that CoinDesk attended.
The fund will also keep repurchase agreements () as part of the reserves, Fox-Geen added.

The development came after Circle the backing of its stablecoin last month to protect USDC from a potential fallout if the U.S. government failed to increase its ability to borrow and default on its debt.
CEO Jeremy Allaire said in early May that the firm would not hold bonds maturing beyond the end of the month. By June, CoinDesk reported that the reserve fund into involving systemically important banks such as Goldman Sachs, BNP Paribas, Bank of America and Royal Bank of Canada.
Eventually, U.S. lawmakers struck a deal to increase the nation’s debt limit and President Joe Biden the legislation on June 3, averting calamity on financial markets.
As of June 20, Circle added $2.2 billion of T-bills to the fund, while repos constituted some 90% of the fund’s $24.7 billion in assets, according to BlackRock’s website. The company held an additional $3.5 billion in , the “vast majority, over 90%” stored at the Bank of New York Mellon, Fox-Geen said.
Edited by James Rubin.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
FHE is live! Bullish or bearish? Join to share 24,000 FHE!

BABY is live! Bullish or bearish? Join to share 24,000 BABY!


VIPBitget VIP Weekly Research Insights
The unique value of Proof-of-Work (PoW) tokens lies in their mining mechanism and regulatory positioning. Research shows that mining costs are a defining feature of PoW tokens, involving significant investment in hardware and electricity. When market prices approach miners' breakeven points, miners tend to hold onto their coins in anticipation of future appreciation. This behavior reduces circulating supply, shifts the supply-demand balance, and may contribute to price increases. Regulatory clarity is also critical to the investment appeal of PoW tokens. Both BTC and LTC are classified as commodities by the U.S. SEC rather than securities, which simplifies the ETF approval process. In January 2024, the approval of the BTC spot ETF triggered significant institutional inflows. LTC is currently undergoing the ETF application process. While DOGE and KAS have not yet received formal classification, their PoW nature may position them for similar treatment. Together, these factors enhance market liquidity and attract more institutional investors.

Trending news
MoreCrypto prices
More








