USD Coin (USDC) issuing company Circle has revised the stablecoin collateral structure in favor of short T Bill to mitigate a potential US technical default. This was stated by CEO Jeremy Allair, writes Bloomberg.
The situation escalated against the background lack of progress on the issue of raising the US debt limit. The meeting of leaders of both parties in the House of Representatives and the Senate with President Joe Biden turned out to be fruitless.
Funds from the US Treasury can end by June 1, 2023.
Circle got rid of securities maturing after the beginning of June, Allaire said. The company does not want to run the risk of “a potential disruption to the ability of the US government to pay its debts.”
Current notes on Circle’s balance sheet have a maturity date of May 31st, according to the latest data.
Over the past six months, the total market value of USDC has fallen by 31.7% from $44.1 billion to $30.1 billion, according to CoinGecko.
Recall that in April 2023, Allair called enforcement actions against crypto firms are the main factor in reducing the capitalization of the stablecoin.
In addition to the harsh measures of regulators, the banking crisis affected – the share of Circle in the collapsed SVB accounted for about 8% of the total cash reserves underlying the value of USDC.
On March 11, amid the collapse of the institution, the stablecoin temporarily lost its peg to the US dollar. Later, Circle assured of solving problems with the banking support of the asset.
Circle previously launched a solution for USDC transfers between Ethereum and Avalanche.
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USD Coin (USDC) issuing company Circle has revised the stablecoin collateral structure in favor of short T Bill to mitigate a potential US technical default. This was stated by CEO Jeremy Allair, writes Bloomberg.
The situation escalated against the background lack of progress on the issue of raising the US debt limit. The meeting of leaders of both parties in the House of Representatives and the Senate with President Joe Biden turned out to be fruitless.
Funds from the US Treasury can end by June 1, 2023.
Circle got rid of securities maturing after the beginning of June, Allaire said. The company does not want to run the risk of “a potential disruption to the ability of the US government to pay its debts.”
Current notes on Circle’s balance sheet have a maturity date of May 31st, according to the latest data.
Over the past six months, the total market value of USDC has fallen by 31.7% from $44.1 billion to $30.1 billion, according to CoinGecko.
Recall that in April 2023, Allair called enforcement actions against crypto firms are the main factor in reducing the capitalization of the stablecoin.
In addition to the harsh measures of regulators, the banking crisis affected – the share of Circle in the collapsed SVB accounted for about 8% of the total cash reserves underlying the value of USDC.
On March 11, amid the collapse of the institution, the stablecoin temporarily lost its peg to the US dollar. Later, Circle assured of solving problems with the banking support of the asset.
Circle previously launched a solution for USDC transfers between Ethereum and Avalanche.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!