The payments management firm has released a detailed reserve report, revealing that its USDC stablecoin is backed only by cash and short-term treasury bonds.  Full Reserve Report To Win Trust In a bid to practice transparency and instill trust among its customers, Circle Internet Financial has released a full breakdown of its USD Coin (USDC) holdings. Although the report is unaudited, it does offer customers more clarity on Circle’s $55.7 billion reserves. As of June 30, Circle holds $42.12 billion in short-term United States Treasury bonds with an average maturity of 43.9 days, and the latest expiry date being September 29. Since the maturity is less than three months, these bonds are all considered short-term. The report also included the CUSIP number of the bonds. Additionally, the reserves also held $13.58 billion in cash at US-regulated financial institutions like the Bank of New York Mellon (BNY Mellon), Citizens Trust Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, Silvergate Bank, and US Bancorp.  Monthly Reserve Report  Circle has also announced that it will release regular monthly reports of its stablecoin reserves. In fact, the company is also working with its custodians to get approval for daily disclosures of its holdings for maximum transparency with investors.  In a blog post, Circle CFO Jeremy Fox-Green wrote,  “The USDC reserve is held solely in cash and 3-month U.S. Treasuries, held in segregated accounts for the benefit of USDC holders, and is entirely separate from Circle’s operations…While U.S. policymakers work to enact federal regulations for stablecoins, Circle continues to increase our transparency based on new industry innovations and what USDC holders within our ecosystem would like to see.”  USDC Rising Amidst Stablecoin FUD The detailed report comes at a time when the stablecoins, in general, are going through a rough patch. The market is riddled with a credit crisis, and several stablecoins have lost their price peg. It all stemmed from the Terra debacle, when the then-third-largest stablecoin, TerraUSD (UST), lost its dollar peg and came crashing to the ground. It has also resulted in increased scrutiny over crypto firms and their finances, as many investment firms face liquidity issues and file for bankruptcy. However, Circle’s commitment to regulatory clarity seems to be paying off as its USDC stablecoin is climbing the rankings due to the continued rise of DeFi. In fact, it has motivated the firm to expand its stablecoin operations beyond the US dollar with the launch of the Euro Coin (EUROC), which is fully backed by the Euro. The firm had previously raised $400 million to develop USDC’s role in traditional finance.  Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.