Nearly all of Circle’s USDC stablecoin is backed by U.S. {dollars}, the corporate revealed on Tuesday.

Circle, a world funds firm, was certainly one of USDC’s creators. It revealed a breakdown of its property backing the stablecoin for the primary time in its newest attestation report, which was dated July 16. Based on the report, about 61% of its tokens are backed by “money and money equivalents,” which means money and cash market funds.

Yankee Certificates of Deposit – which means CDs issued by international (non-U.S.) banks – comprise an additional 13%, U.S. Treasuries account for 12%, business paper accounts for 9%, and the remaining tokens are backed by municipal and company bonds. 

The corporate has issued about $22.2 billion price of USDC, in keeping with the attestation.

It’s unclear what, particularly, Circle has invested in to again USDC. The corporate intends to go public later this 12 months in a merger with a particular objective acquisition firm that may worth Circle at $4.5 billion.

Based on footnotes in Tuesday’s attestation, the business paper has a “minimal S&P ranking of S/T A1,” which means S&P International Scores regards the issuer’s capacity to fulfill its monetary obligations as being robust.

Circle joins Tether in publishing a tough breakdown of its asset reserves, not less than partially answering questions on whether or not its stablecoin is totally backed. Like Circle, Tether additionally makes use of business paper to again its USDT token, although business paper accounts for a lot extra of Tether’s reserves than Circle’s does.

UPDATE (July 20, 2021, 14:27 UTC): This story has been up to date with extra context.