How solid are Circle's USDC reserves?
(((Frances 'Sisyphus' Coppola))) 🌷🌷🌷 on Twitter
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Here's more stablecoin smoke and mirrors. USDC, this time. Circle's April attestation from Grant Thornton confirms that all USDC are backed by US dollars in "custody accounts". But.... https://t.co/VngnZ6HMiR— (((Frances 'Sisyphus' Coppola))) 🌷🌷🌷 (@Frances_Coppola) June 12, 2021

This is not new news, but unless Circle sharpens up its disclosure standards, it will fall under the same suspicious clouds that hang over Tether’s USDT reserves. Circle has been publishing monthly attestations since October 2018, although they have recently been publishing on a one- or two-month delayed basis, which in itself raises concerns. However, there was a subtle change in the attestations starting with the March 31, 2020 one. Prior to that the key statement read:

US Dollars held in custody accounts are the total balances in accounts held by the Company at federally insured US depository institutions on behalf of the USDC holders at the Report Date.

But starting with the March 31, 2020 Circle added “and in approved investments” (see below). And furthermore, they don’t provide any detailed breakdowns of those other investments, and I can’t find anywhere any indication of what “approved investments” are.

US Dollars held in custody accounts are the total balances in accounts held by the Company at federally insured US depository institutions and in approved investments on behalf of the USDC holders at the Report Date.

Hmmm…

Source : kiffmeister’s fintech daily digest

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