Deepening Our Partnership with BlackRock

Deepening Our Partnership with BlackRock

Trust & Transparency

This is part of Circle’s ongoing Trust & Transparency series. 

From the start, we’ve managed the USDC reserve to minimize risk — liquidity, counterparty, operational, reputational and more — so that USDC holders can be confident their money is sound and redeemable 1:1 for U.S. dollars at any time. This has guided our approach to regulation, liquidity and transparency and shaped our strategy of partnering with leading financial institutions.

Through our partnership with BlackRock, we have begun investing in the Circle Reserve Fund to manage a portion of the USDC reserves. We expect the reserve composition will continue to be approximately 20% cash and 80% short duration U.S. Treasuries. 

The Circle Reserve Fund is a registered Rule 2a-7 government money market fund managed by BlackRock Advisors, LLC and its portfolio will consist of cash and short-dated U.S. Treasuries. 

The Circle Reserve Fund is only available to Circle. As our existing Treasury holdings mature, the proceeds will be used to purchase new Treasuries by the Circle Reserve Fund. We began this process on November 3, 2022 and expect to be fully transitioned by the end of Q1 2023. The Fund is custodied at Bank of New York Mellon, which already serves as the custodian for the Treasuries that comprise the USDC reserve today.

The Circle Reserve Fund is subject to the requirements of the Investment Company Act of 1940, including being subject to an independent board, and will report portfolio holdings on a daily basis. 

We invite you to learn more about the USDC reserve and Circle’s approach to building trust and transparency.

Related blogs

View all
Inside USDC Reserves at Circle
Company Updates

How the USDC Reserve is Structured and Managed

Jeremy Fox-Geen | March 28, 2023

Built as a true bearer asset, USDC is backed by a reserve held in short-duration U.S. Treasuries and cash deposits within the U.S. banking system.

Read story about How the USDC Reserve is Structured and Managed
Circle Built for this Moment 10 years
Trust & Transparency

CEO Perspective | Ten Years and Counting

Team Circle | February 27, 2023

Amid the evolving industry landscape, Circle is adapting and continues to thrive as we have for the last 10 years and counting.

Read story about CEO Perspective | Ten Years and Counting
Trust_Transparency
Trust & Transparency

Circle Continues to Enhance Details in the USDC Reserve Attestations

Jeremy Fox-Geen | December 23, 2022

Grant Thornton’s latest monthly attestation report verifies the cash and U.S. Treasury assets backing USDC, including details on the portfolio holdings in the Circle Reserve Fund.

Read story about Circle Continues to Enhance Details in the USDC Reserve Attestations