According to Circle’s most recent reserve report, around 65% of all USD Coin (USDC) reserves are held as US treasury bills.

Circle held $43.4 billion in USDC reserves to back 43.23 billion USDC in circulation as of Nov. 30, 2022. Of these reserves, $12.79 billion lay in the Circle Reserve Fund, a registered government money market fund wholly owned by Circle and managed by BlackRock. The fund’s holdings included 12 US treasury bills as of Nov. 30.

Circle created its Reserve Fund on Nov. 3, and in less than a month, it transferred around 29.5% of the stablecoin reserves to the fund. Since then, Blackrock’s disclosures information reveals that “USDC reserves invested in the Circle Reserve Fund have risen to around $28.6 billion, or 65%,”

Popular crypto analyst John Paul Koning called it a “win” for USDC users, adding:

“Circle is yielding some of its control over USDC’s reserves to an external manager subject to SEC regulation, which ultimately makes USDC safer. Transparency improves too, since USDC users can now get regular updates from BlackRock.”

Another $19.41 billion worth of USDC reserves were held as treasury bills directly by Circle as of Nov. 30.

Additionally, $11.15 billion of the stablecoin’s reserves was stored as cash at US-regulated financial institutions, which include Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, and Silvergate Bank.

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