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Circle Starts Moving USDC Reserves Into a Blackrock-Managed Fund, Firm Expects to Be ‘Fully Transitioned’ Next Year

News Feed - 2022-11-07 03:11:05

Circle Starts Moving USDC Reserves Into a Blackrock-Managed Fund, Firm Expects to Be "Fully Transitioned" Next Year


According to the crypto firm Circle Internet Financial, the company is “deepening” its partnership with the world’s largest asset manager Blackrock. Circle disclosed that it has started to transfer USDC reserves into a Blackrock-managed fund that’s registered with the U.S. Securities and Exchange Commission (SEC). Circle Deepens Relationship With the World’s Largest Asset Manager Blackrock


In mid-April 2022, Circle detailed that the company entered an investment agreement with Blackrock Inc., Fin Capital, Fidelity Management and Research, and Marshall Wace LLP. The investment was a $400 million funding round and during the announcement, Blackrock explained how Circle and the New York-based multi-national investment company would expand the two companies’ existing relationship. It was also revealed that Blackrock would be used by Circle for “managing significant assets for the reserves that back USDC.”


Six months later, Circle disclosed on Nov. 3, 2022, that the company would be deepening its relationship with Blackrock, and Circle has started to move USDC reserves into a Blackrock-managed fund. “Through our partnership with Blackrock, we have begun investing in the Circle Reserve Fund to manage a portion of the USDC reserves,” Circle’s chief financial officer (CFO) Jeremy Fox-Green explained. The Circle CFO added: We expect the reserve composition will continue to be approximately 20% cash and 80% short-duration U.S. Treasuries.


The investment objective of the Circle Reserve Fund (USDXX) is to “seek current income as is consistent with liquidity and stability of principal.” Circle is the only investor and the fund invests in “at least 99.5% of its total assets in cash, U.S. Treasury bills, notes, and other obligations.” According to Circle’s announcement, the company hopes to be fully transitioned by the end of March 2023. Number of USDC Stablecoins in Circulation Slides Significantly, Circle’s EURC Token to Be Supported by Solana Next Year


Circle says the fund is held by Bank of New York Mellon as the financial institution has already been a custodian for USDC’s reserves that are comprised of U.S. Treasuries. Circle’s announcement on Nov. 3 follows the number of USDC in circulation decreasing rapidly during the last few months.


Additionally, in mid-June, Circle announced the launch of a euro-backed stablecoin called euro coin (EURC). Marcus Boorstin, Circle’s director of engineering, announced this week at a Solana-centric conference that EURC would be minted on Solana next year. Tags in this story asset manager, bank of new york mellon, Blackrock, blackrock circle, BlackRock Inc., Blackrock-managed fund, bonds, Circle, Circle CFO, Circle Reserve Fund, EURC, euro-backed stablecoin, Jeremy Fox-Green, Marcus Boorstin, reserves, Stablecoin, stablecoin assets, us treasuries, USDC, USDC reserves


What do you think about Circle’s blog post about deepening its relationship with the world’s largest asset manager Blackrock? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Google Cloud Is Running a Solana Validator, Blockchain Node Engine to Support SOL Chain Next Year NEWS | 1 hour ago Tim Draper Extends BTC Price Prediction by 6 Months — "By Mid-2023, I’m Expecting to See Bitcoin Hit $250K" NEWS | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: Michael Vi / Shutterstock.com Previous articleBitgo Reveals Wrapped Dogecoin Token Built on Ethereum Next articleGoogle Cloud Is Running a Solana Validator, Blockchain Node Engine to Support SOL Chain Next Year Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItToday"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits


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