USDC Backed by 61% Cash and Equivalents

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  • Circle has produced the 33rd transparency report for its USDC stablecoin
  • Each USDC is currently backed 61% by cash and cash equivalents, compared to Tether’s 3.87%
  • Circle’s 33rd transparency report comes two months after Tether was forced to produce their first

Circle, the company behind the USDC stablecoin, has published its latest transparency report that shows it is backed 61% by cash and cash equivalents. This is a marked difference from the cash reserves backing USDT, the biggest stablecoin in the space, which stands at 3.87%, with huge differences in the denomination of other forms of backing the stablecoin. USDC’s market cap stands at $22 billion, while Tether’s is almost double that at $42 billion.

USDC and USDT Worlds Apart

Circle’s 33rd and latest transparency report, published yesterday, shows how each dollar in the USDC ecosystem is backed:


There are some similarities in the type of backing USDC and USDT tokens receive, but huge discrepancies in the percentage of each token that they back. For example, the majority of USDC tokens are backed by cash (61%), while commercial paper makes up just 9% of their backing. In contrast, Tether backs each USDT token with a majority of commercial paper (65.39%) and just 3.87% cash.

Commercial paper is a type of unsecured, short-term debt, suggesting that USDC is in a far healthier position than Tether, whose first legally demanded transparency report in May nevertheless seems to have satisfied the New York Attorney General who called for it.

Grant Thornton Supports Figures

The USDC report also came with an attestation report from accounting firm Grant Thornton confirming the reserves based on the evidence provided to them by Circle and through their own investigations. Once again this makes a mockery of Tether’s previous attempts at third-party transparency, which have included vague promises from managers of foreign banks claiming that they have seen the vaults containing Tether’s funds.