TechFlow News — Circle Internet Financial has announced it has begun transferring the reserves backing its USDC stablecoin into the "Circle Reserve Fund," a fund established by BlackRock and registered with the U.S. Securities and Exchange Commission (SEC). The transfer is expected to be completed by March next year. BlackRock plans to include this fund in the Federal Reserve's reverse repo program, and Circle CFO Jeremy Fox-Geen expressed hope that ultimately the reserves will remain at the Federal Reserve.
According to Circle’s weekly disclosures, the currently circulating $43.9 billion in USDC is backed by $44.1 billion in cash and short-term U.S. government securities. The new fund’s portfolio will also consist of cash and U.S. Treasuries. Circle stated that assets in the new fund will be held in custody by BNY Mellon. Subject to the Investment Company Act, the fund will require an independent board and daily reporting of its portfolio.Original link
