Since nearly three years ago when the first USD Coin (USDC) entered circulation, Circle, together with Centre Consortium, have prioritized trust, transparency, and accountability. These priorities have helped USDC grow widely within the global blockchain ecosystem.
As USDC in circulation has grown more than 2,600% since the beginning of 2021, so too has our own commitment (along with external calls) to enhanced transparency of the composition of dollar-denominated assets. While public disclosure of reserves is not currently a regulatory requirement for stablecoins or privately issued digital currencies, we want to continue leading the sector with greater transparency and a deeply committed model of public-private collaboration, especially as the role of dollar digital currencies grows in importance in the global financial system.
With this latest reserve attestation, we are now including a breakdown of dollar-denominated reserve assets, which are all held in the care, custody and control of U.S. regulated financial institutions and in line with laws and guidelines from our U.S. state money transmission regulators.
Indeed, as pioneers in the digital currency industry, Circle, together with Centre Consortium, have evolved a reserve management model that is more conservative and transparent than comparatively regulated digital payments systems and financial technology (FinTech) organizations. Along these lines, we welcome the work being undertaken by the President’s Working Group on stablecoins, and note that calls for building the future of banking, payments, and money can continue to remain a private sector activity with appropriate public sector and regulatory oversight, transparency and accountability.
As we continue our journey to becoming a public company, we will have increasing opportunities for greater transparency, accountability and disclosure around our broader business and operations. Altogether, this expanding public accountability can help to strengthen trust in Circle, USDC and companies building on the standards and market infrastructure that we have been delivering over the past several years.