Fun

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


As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing

News Feed

USDM stablecoin eyes retail rollout next month: Mehen founder
Brayden Lindrea5 hours agoUSDM stablecoin eyes retail rollout next month: Mehen founderSome industry pundits say USDM has superior properties to USDT and USDC in that it can’t be frozen — but problems could arise if
US Financial Regulators Join UK FCA’s ‘Global Sandbox’
Four U.S. regulators joined the Global Financial Innovation Network, an international alliance of government regulators led by the UK’s Financial Conduct Authority seeking to bolster the future of fintech.
Quantum-Resistant Token, Crown Sovereign (CSOV) Will Be Listed on Bitcoin.com Exchange
Quantum-Resistant Token, Crown Sovereign (CSOV) Will Be Listed on Bitcoin.com Exchange press release PRESS RELEASE. Crown Sterling’s Crown Sovereign token (
UBS Warns of Crypto Winter Amid Expectation of Fed Rate Hikes and Regulation
UBS Warns of Crypto Winter Amid Expectation of Fed Rate Hikes and Regulation UBS, Switzerland’s largest bank, has warned about a crypto winter where prices crash and may not
Blast airdrop to launch June 26, distributing 17% of supply to early users
Christopher Roark4 hours agoBlast airdrop to launch June 26, distributing 17% of supply to early usersThe Blast team announced that its token airdrop would commence on June 26 and that users who bridged assets to the net
XRP Price Ready To Run To $11 ATH? Alternative Larger Metrics Show The Answer
Este artículo también está disponible en español. A crypto analyst has shared an XRP price chart, analyzing its action on the 4-hour timeframe while pinpointing key metri
Biggest Movers: ADA Extends Gains, as SOL Consolidates on Saturday
Biggest Movers: ADA Extends Gains, as SOL Consolidates on Saturday Cardano rose for a second straight session to start the weekend, as the token continued to move away from a key
Major XRP Accumulation Alert: Wallets Holding Over 10,000 Coins Cross 300,000
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Price analysis 7/1: SPX, DXY, BTC, ETH, BNB, SOL, XRP, TON, DOGE, ADA
Rakesh Upadhyay4 hours agoPrice analysis 7/1: SPX, DXY, BTC, ETH, BNB, SOL, XRP, TON, DOGE, ADABitcoin and the wider crypto market have historically rallied in July, but traders are worried that the Mt. Gox repayments co
Analyst Who Correctly Predicted The Ethereum Price Crash Against Bitcoin Reveals Where It’s Headed Next
Este artículo también está disponible en español. The Ethereum price has returned above the $3,800 price level on the back of a 5% increase in the past 24 hours. Interest
BTC halving to fuel ‘raging firesale of crypto assets’ — Arthur Hayes
Jesse Coghlan6 hours agoBTC halving to fuel ‘raging firesale of crypto assets’ — Arthur HayesCryptocurrencies are headed for intense turbulence in the second half of April, spurred by the Bitcoin halving and a Fed
Chainlink Hits $13.5 For The First Time Since July – Smart Money Accumulation?
Este artículo también está disponible en español. Chainlink (LINK) has surged impressively over the past few days, breaking above the critical $13 resistance level and po