(Duplicated) Circle to Set a Portion of USDC Reserves Into New BlackRock Fund

To deepen its partnership with BlackRock Circle, the issuer of the stablecoin USDC, has set up a new fund with BlackRock to help manage the stablecoin's reserves.

According to the announcement, Circle will place a portion of USDC reserves into Circle Reserve Fund, a new government money market vehicle managed by BlackRock Advisors. The stablecoin issuer stated this portfolio would be made up of cash and short-dated U.S. Treasuries. The company added that this reserve fund is only accessible to Circle.

Proceedings will be used as maturing holdings to purchase new Treasuries by the fund as the company’s existing Treasure holdings develop. The process is expected to be fully transitioned by the end of the first quarter of 2023.

The new fund will be detained in custody by the Bank of New York Mellon, an investment bank already serving as the custodian for the Treasuries that currently make up the USDC reserve.

In June, Circle published the first monthly USDC reserve treasury report. The report showed a detailed breakdown of the US reserve assets by every Treasury Bond. Overall, the stablecoin issuer has been thriving to play its part in the crypto industry. 

Last month, the company launched an institutional digital identity system, a technology based on Verite, an open-source framework for the issuance, custody, and verification of decentralized identity credentials.

The launch allowed institutions with Circle accounts and MetaMask institutional wallets to apply for KYB (Know Your Business) credentials, enabling web and mobile applications and smart contracts to verify user permissions (including usage rights, time, location, etc.) for licensing on-chain activity.

Circle also partnered with TrueFi to support the Verite KYB credentials to access TrueFi’s permission lending platform, which enables institutions to transact with authenticated counterparties they can trust.