USDC Transparency Stack Upgraded by Circle: Why Is This Crucial for Stablecoins?

Jeremy Allaire, CEO and founder of Circle Inc., a fintech heavyweigt behind USD Coin (USDC) stablecoin, highlights the commintment of his firm to the highest transparency standards for its flagship product.

38 addresses blocked with $2.7 million in USDC: Circle

Mr. Allaire has taken to Twitter to share a comprehensive thread on the security and transparency developments USD Coin has (USDC) undergone in recent weeks.

1/ With so many firms facing fundamental challenges and risks, Circle has amped up our own information about Circle and USDC. Sharing it here so it's fresh for people to review. We started publishing these in the days following the Terra collapse. https://t.co/SYNpwYxUif

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— Jeremy Allaire (@jerallaire) July 2, 2022

He shared some USD reports to stress that USDC is the most "stable" stablecoin ever with its standard deviation of under $0.003 in the last two years.

USDC is a fully audited and attested stablecoin; it is also 100% compliant with OFAC rules. Circle has blocked 38 addresses of USDC holders with $2.7 million in equivalent blocked due to sanctions. Also, the protocol implemented weekly public breakdowns of its key financial metrics.

Mr. Allaire also shared some statistics regarding USDC's integration into the global Web3 context. According to him, the token is currently supported by 180 exchanges and integrated into 30+ various protocols.

USDC is 1:1 redeemable: "Any amount. Always. Period"

The Circle team highlighted the reliability of the assets basket that USDC stablecoin is backed by. Its reserves consist of short-dated U.S. Treasuries (80%) and cash (20%), denominated in U.S. dollars; all assets are stored in regulated U.S. institutions.

Also, Circle mocked its competitors who use various types of assets to back their centralized stablecoins:

The USDC reserve does not contain any other high risk, less liquid assets such as digital assets, private or public equity, loans secured or unsecured, commercial paper of any kind or credit rating, assets denominated in currencies other than US dollars, or assets held with third parties subject to lock-ups or other restrictions upon liquidity.

That is why USDC can always be redeemed for one U.S. Dollar; over the last year, Circle has redeemed $108.4 billion for USDC following customers' requests.

By press time, USDC's market cap exceeds $53 billion; aggregated trading volume is over $800 million in equivalent daily.