Circle gradually invests reserve assets into market funds under BlackRock, with the proportion approaching nearly 70%.

Monetary economist John Paul Koning shared on Twitter the report from Circle on 12/22, indicating that an independent reserve report conducted by Grant Thornton showed that the reserve assets of USDC have been invested in the Circle Reserve Fund managed by BlackRock.

Circle Reserve Fund

As previously reported, Circle established this reserve fund on 11/3. With Circle-managed Treasury bonds maturing, they have begun transferring their USDC stablecoin reserves to a dedicated fund set up by BlackRock and registered with the U.S. Securities and Exchange Commission (SEC).

As of 11/30, the fund's assets include 12 U.S. Treasury bonds, with December's fund allocation rising to 30% of reserve assets, totaling $12.79 billion.

Additionally, according to BlackRock's official data, as of 1/6, the proportion of USDC reserves invested has increased to 65%, with a total size of $28.6 billion as shown below.

John Paul Koning pointed out that this seems to be a victory for USDC users, as Circle is gradually transferring control of USDC reserve funds to externally banked and SEC-regulated institutions. This move will ultimately enhance the security and transparency of USDC, allowing users to stay informed about the latest reserve asset status through BlackRock.

Circle's founder, Jeremy Allaire, also tweeted that all three-month Treasury bonds will be invested in BlackRock's money market fund, Circle Reserve Fund, by the end of January, further enhancing transparency through an SEC-regulated independent fund.

Furthermore, Circle's report indicates that as of 11/30, there were $11.15 billion in reserve assets held in cash at major U.S. banks, including BNY Mellon, New York Community Bank, and Silicon Valley Bank.