TechFlow news — USDC issuer Circle is adjusting the reserve assets backing USDC to mitigate risks associated with potential U.S. government debt default. According to the BlackRock-managed Circle Reserve Fund website, the fund has added $8.7 billion in overnight repurchase agreements to its portfolio. These tri-party repo agreements involve major banks including BNP Paribas, Goldman Sachs, Barclays, and Royal Bank of Canada.
A Circle spokesperson said the move had been in planning for months, shifting assets into cash and overnight repos to provide additional protection.
In addition, Circle has sold Treasury bills maturing after May 31. Currently, U.S. lawmakers are in discussions with the Biden administration over raising the debt ceiling.
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