The digital asset environment in the U.S. has changed significantly in the months since the spectacular collapses of FTX and other crypto firms. This new landscape has come into even sharper focus following the recent U.S. regulatory actions against some of the industry’s key players, and it isn’t surprising.
Amid the evolving industry landscape, Circle is adapting and continues to thrive as we have for the last 10 years and counting. The current state of the industry reaffirms our long standing position of holding ourselves to the highest standards of financial, security, operational and compliance controls, as required of U.S. regulated financial institutions. Our regulated, fully-reserved and transparent model has maintained the stability of USD Coin (USDC) and its position as a safe harbor in good times and bad.
Circle continues to lead the industry on transparency, financial integrity and market conduct. Since launching USDC in 2018, we’ve worked to issue the most transparent and trusted payment stablecoin in the world. USDC is 100% backed by cash and short-dated U.S. Treasuries so that it’s always redeemable 1:1 for U.S. dollars.
With the recent addition of the Circle Reserve Fund, which is registered with the U.S. Securities and Exchange Commission, Circle is now able to provide the deepest level of third-party, independent reporting of USDC reserve assets ever. One of the Circle Reserve Fund’s features is that it provides independent daily reporting of its underlying portfolio.
Over five years, USDC has powered more than $8.6 trillion in cumulative on-chain transactions – less today for crypto trading and more for payments, remittances and humanitarian aid.
As part of our Circle Impact initiative, we joined UNHCR, the U.N. refugee agency, and other partners to rapidly deliver aid to displaced Ukrainians via USDC. In a world where remittance fees top $30 billion and corrupt governments siphon aid, USDC represents not just a better way to spend, send, save, and secure money but also a lifeline for survival and economic mobility.
Circle has always prioritized deep regulatory and policy engagement in the U.S. and around the world. In the months ahead, we will keep urging policymakers to enact stronger control structures, supervision and policies to appropriately regulate centralized intermediaries and new forms of digital money, like USDC.
Just as stronger consumer protections and market conduct rules were established following the stock market crash of 1929, the Enron debacle in the early 2000s, and the 2008 financial crisis, policymakers and regulators must do the same for digital assets. This is vital to accelerating the industry’s transition from its speculative phase to a new, long-lasting era of utility value.
For all of the current stress in the industry, the recent and rapid technological advancements we’re now seeing on public blockchains have been tremendous. The steady flow of innovations and upgrades in this space are increasingly giving the financial system the internet superpowers of speed, lower costs, transparency and auditability - and they’re here to stay.
After ten years and counting, Circle’s workforce numbers more than 900 people across 38 U.S. states and 14 countries and is working to ensure we continue rising to meet the moment for many more decades to come. We are continuously reevaluating our policies, procedures, operating protocols, products and partners to tighten controls across the business and deliver world-class service to our customers and the communities we serve. It’s part of our unwavering commitment to solid business fundamentals and is a key reason the company is in its strongest financial position in our 10 year history.
Our on-chain payment products and non-custodial solutions continue to provide businesses with a secure, efficient method to benefit from blockchain technologies. As our first State of the USDC Economy report shows, we’re accelerating utility value worldwide. Looking ahead, becoming a public company remains part of Circle’s core strategy to continue to enhance trust and transparency.
We look forward to continued collaboration across our ecosystem as the utility era of blockchain and digital assets unfolds.