The company said on Thursday, Circle Internet Financial’s USDC stablecoin’s resources BlackRock announced that it has started to move to a private fund established by the US Securities and Exchange Commission and registered with
Assets backing Circle Internet Financial’s USDC will complete the transition to an SEC-backed money market fund early next year.
Stablecoin Developer Circle Starts Funding New BlackRock Fund
BlackRock Advisors The Circle Reserve Fund, a public money fund managed by BlackRock, has been in business for months after BlackRock first tried to register it in May.
“From the very beginning, we have managed the USDC reserve to minimize risk – liquidity, reputation and more,” the company said in a statement.
Like this USDC “holders can be assured that their money is safe and can be used at a one-to-one rate for US dollars at any time.”
Placing the assets in an SEC-regulated fund further strengthened the company’s disclosures about security.
Current circulation of $43.9 billion in USDC is currently backed by $44.1 billion in cash and short-term U.S. government bonds, according to the company’s weekly releases. The portfolio of the new fund will also consist of cash and US Treasury bonds.
According to Circle, the new fund’s assets will be held at the Bank of New York Mellon and the fund will be regulated under the Investment Company Act of 1940, which requires an independent board of directors and daily reports on the portfolio.
Circle previously started a financial relationship with the world’s largest asset manager BlackRock, and the firm invested in Circle’s funding round announced in April.
*Not investment advice.
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