Reserve

Stablecoin issuer Circle no longer has Treasury holdings that mature beyond early June as it does not want to get tangled in a potential US debt default.
The development follows US Treasury Secretary Janet Yellen&#8217;s warning that the government could be unable to pay its bills by June 1st and could default on its debt at a later date, sparking widespread concern.
<ul>
<li>In a recent <a href="https://www.politico.com/newsletters/morning-money/2023/05/10/rewriting-crypto-00096124" target="_blank" rel="noopener" data-wpel-link="external">interview</a>, Chief Jeremy Allaire noted that Circle doesn’t want to carry exposure &#8220;through a potential breach of the ability of the US government to pay its debts.&#8221;</li>
<li>As such, the fintech firm has adjusted its mix of reserves that back USDC by switching to short-dated US Treasuries to avoid a catastrophic fallout.</li>
<li>Circle Reserve Fund Disclosures, which are managed by BlackRock, <a href="https://www.blackrock.com/cash/en-us/products/329365/circle-reserve-fund" target="_blank" rel="noopener" data-wpel-link="external">revealed</a> that current holdings mature no later than May 31.</li>
<li>A Treasury bill, aka T-Bill, is a short-term government debt obligation backed by the US Treasury that can have maturities ranging from four weeks to 52 weeks.</li>
<li>The Republicans and Democrats failing to reach a deal might put the country at risk of defaulting on the national debt. To avoid a default, both sides will have to raise the debt ceiling.</li>
<li>However, negotiations on raising the debt ceiling got off to a rocky start this week as White House talks concluded with no agreement.</li>
<li>As for Circle, its US Dollar-pegged stablecoin &#8211; USDC &#8211; suffered a <a href="https://cryptopotato.com/why-did-usdc-depeg-circle-ceo-gives-the-inside-story/" target="_blank" rel="noopener" data-wpel-link="internal">depeg</a> after the collapse of the Silicon Valley Bank (SVB) earlier this year. The token has since stabilized and is currently sitting at a $30.12 billion market cap.</li>
</ul>
The post <a href="https://cryptopotato.com/usdc-issuer-circle-rebalances-treasury-holdings-amid-us-debt-ceiling-crisis/" rel="nofollow">USDC Issuer Circle Rebalances Treasury Holdings Amid US Debt Ceiling Crisis</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.

USDC Issuer Circle Rebalances Treasury Holdings Amid US Debt Ceiling Crisis

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