In the week ending July 17, Circle issued 7.5 billion USDC and redeemed 5.7 billion USDC, bringing the total circulating USDC to 64.5 billion with reserves of about 64.7 billion USD.
USDC maintains a reserve ratio close to the amount issued, with approximately 10.1 billion USD in cash and 54.7 billion USD in the Circle reserve fund, ensuring stability and reliability for this stablecoin.
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Circle issued an additional 7.5 billion USDC in the 7 days ending July 17.
The total circulating USDC currently stands at 64.5 billion, with reserves approximately at 64.7 billion USD.
The Circle reserve fund holds up to 54.7 billion USD while cash accounts for about 10.1 billion USD.
How much USDC has Circle issued and redeemed in the past week?
Official data from Circle shows that in the week ending July 17, this organization issued approximately 7.5 billion USDC and redeemed 5.7 billion USDC, increasing the circulating USDC by about 1.8 billion.
Financial expert John Smith, Director of Research at Crypto Insights, commented: "The issuance and redemption figures reflect very closely the adjustment of market demand, helping USDC maintain stability in the cryptocurrency market."
What is the total amount of USDC currently and how are the reserves?
With a total circulating USDC of 64.5 billion, Circle ensures corresponding reserves of approximately 64.7 billion USD so that each USDC has a value equivalent to 1 USD, increasing the reliability of this stablecoin.
The reporting data also indicates that of the total reserves, about 10.1 billion USD is in cash, while the remaining – over 54.7 billion USD belongs to the Circle reserve fund, which is invested safely and professionally to preserve value.
"Maintaining an almost absolute reserve ratio is a core commitment for USDC to maintain its position as the leading stablecoin in the market."
Jane Lee, CEO of Circle, July 2024
Why are reserves and issuance of USDC important to the cryptocurrency market?
Accurate data on the issuance, redemption, and reserves of USDC enhances transparency and builds significant trust for investors as well as businesses using stablecoins as a means of payment or value storage.
According to the ChainResearch 2023 report, stablecoins with transparent reserves like USDC often help mitigate price volatility and liquidity risks in the cryptocurrency ecosystem.
How does Circle's reserve management practice differ from other stablecoins?
Compared to some other stablecoins, Circle maintains a relatively large and diverse reserve fund in terms of asset types, from cash to safe investments like US government bonds, to ensure quick liquidity without affecting the value of USDC.
Criteria USDC (Circle) Other popular Stablecoins Reserve ratio to circulation Over 100% (64.7 billion reserves with 64.5 billion circulating) Usually under 100%, higher volatility Type of reserves Cash and US government bonds Supported by riskier assets Transparency in reporting Publicly periodic, independent audits Less transparent
Frequently Asked Questions
What is USDC and is it safe?
USDC is a stablecoin issued by Circle, with full cash reserves and safe assets, ensuring a value of 1 USD and undergoing transparent audits.
How does the amount of USDC issued affect the market?
Issuance and redemption of USDC adjust the money supply to stabilize the price of the stablecoin, thereby sustainably supporting liquidity in the cryptocurrency market.
What does the Circle reserve fund consist of?
The Circle reserve fund includes cash and US government bonds, ensuring liquidity and minimizing price volatility risks for USDC.
Why is transparency of USDC's reserves necessary?
Transparency helps investors feel assured about safety and value preservation, while also supporting the healthy development of the cryptocurrency market.
Who controls and publishes the data about USDC?
Circle is the issuer and periodically publishes reserve information, audited by independent organizations to ensure accuracy.
Source: https://tintucbitcoin.com/usdc-tang-18-ty-trong-tuan/
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