Circle restarts purchasing U.S. Treasury bonds as USDC reserve assets

ChainCatcher news, Circle CFO Jeremy Fox-Geen stated during the company's conference call that the Circle Reserve Fund managed by BlackRock has begun to "increase our direct holdings of U.S. Treasuries," and also mentioned that it will retain repurchase agreements (repo) as part of its reserves.

Just last month, Circle adjusted the reserve asset structure of USDC to protect it from potential impacts of a U.S. debt default. CEO Jeremy Allaire stated in early May that the company would not hold Treasuries maturing after the end of this month. As of June, the reserve fund has transferred all assets to third-party repos, involving systemically important banks such as Goldman Sachs, BNP Paribas, Bank of America, and Royal Bank of Canada.

According to data from BlackRock's official website, as of June 20, Circle has added $2.2 billion in Treasury bills to the fund, with repos accounting for about 90% of the fund's $24.7 billion in assets. Fox-Geen stated that the company also holds $3.5 billion in bank deposits, of which "the vast majority, over 90%" is held at BNY Mellon. (source link)