Circle, the Web3.0 unicorn that is in charge of the issuance and maintenance of the USD Coin (USDC) stablecoin, has revealed it has started building a new and robust reserve fund dubbed the Circle Reserve Funds.
According to Jeremy Fox-Geen, the company’s Chief Financial Officer, the new Circle Reserve Funds are lodged with BlackRock, further deepening its relationship with the world’s largest asset management firm.
The new reserve fund will be managed by BlackRock advisors and it will predominantly be dominated by cash and short-dated US Treasuries. As Jeremy noted, as the existing USDC Treasury matures, funds from the reserve treasury will be pulled to secure the replacement of the reserve to continually guarantee 1:1 access to users’ funds.
“The Circle Reserve Fund is only available to Circle. As our existing Treasury holdings mature, the proceeds will be used to purchase new Treasuries by the Circle Reserve…
