- Prior to this, the company completely excluded them due to concerns about a technical default in the United States.
- But at the same time, Circle wants to keep repurchase agreements (REPOs) with major banks in reserve.
- The firm has already invested about $700 million in bonds maturing in July and August.
US Treasury bonds reappeared in the USDC reserve. Circle has invested in bonds some of the collateral that is managed by the BlackRock fund.
Recall that in early May, the USDC issuer changed the structure of stablecoin reserves. First, the share of bonds was significantly reduced, and then removed from the collateral altogether.
However, yesterday, June 21, Circle CFO Jeremy Fox-Gin during a telephone conversation declaredthat the USDXX fund began to build up this position. But at the same time, the company wants to keep repurchase agreements.
At the time of writing, BlackRock managed USDC reserves contain bonds with a settlement of July 18 and August 8 for a total of $700 million:
Obviously, the “debt deal” convinced Circle of the reliability of the bonds. Read more about this crisis, which, fortunately, did not happen, read in our separate article:
We also recall that yesterday we covered the forecast of the investment bank Berenberg. In it, the organization’s analysts state that the SEC (Securities and Exchange Commission) may take regulatory action against stablecoin issuers and decentralized protocols.