Stablecoin issuer USDC said it intends to replenish its insurance reserves by buying about $28 billion -after getting rid of all government assets a month earlier amid a problem with the approval of the U.S. government debt ceiling.
“The Circle Reserve Fund, which is managed by BlackRock, is starting to build up direct holdings in U.S. Treasuries. So the fund will have buy-back agreements with a number of systemically important banks as part of its reserves,” Circle Chief Financial Officer Jeremy Fox-Geen said.
The top manager explained that the tri-party repo involves the sale of securities with a repurchase agreement. This provides a safe way to manage liquidity and optimize the use of assets. According to the head of Circle’s financial office, buying U.S. Treasury securities in cooperation with reputable banks will allow the company to ensure the safety and stability of its reserve assets in times of uncertainty.
Earlier, Circle CEO Jeremy Allaire had asked
U.S. lawmakers to lay the groundwork for economic
U.S. competitiveness through government support for stablocoins;