Audit Confirmed Reserves of the Circle’s Stablecoin USDC
Auditing company Grant Thornton has checked the reserves of Circle’s USDC. It turned out that at the end of 2018 all USDC tokens were backed with the US dollar.
According to the auditor, as of December 31, 2018, Circle held $251.211 million in reserves. The number of USDC tokens in circulation on that date was equal to 251.211 million. It means that each token is backed with one US dollar.
Also, according to the audit, it is possible to determine the Circle is actively increasing the issuance of stablecoin. But simultaneously tokens are fully backed with reserves. For example, as of November 30, 2018, Circle had $127.5 million in reserves, which was enough to cover all tokens in circulation.
In the first 15 days of 2019, Circle increased the number of tokens to 353.309 million USDC.
Two other stablecoins — Gemini and Paxos — also confirmed that their cryptocurrencies are fully backed with fiat. As of the end of 2018, Gemini had $91 million in reserves, and Paxos had $142 million. That's enough to cover all tokens in circulation.
Tether — one of the most popular stablecoins — has not yet provided the results of its reserves audit. But according to Bloomberg, at least in some months of 2018, Tether’s reserves were enough to cover all USDT tokens.