Circle Releases Third Audit Report of Stablecoin USDC’s Dollar Reserves

22 Jan, 2019 02:28

Cryptocurrency finance company Circle has released the third audit attestation of the reserves of its fiat-backed stablecoin, USD Coin (USDC), according to an official statement Jan. 16.

The third-party audit of Circle’s United States dollar reserves was issued by independent accounting firm, Grant Thornton LLP.

According to the report, as of Dec. 31, 2018 at 11:59 p.m. UTC, 251,211,148 USDC tokens were issued and outstanding, while the firm holds $251,211,209 in custody accounts, a $61 surplus in USD reserves. Circle’s statement concludes:

“As of the Report Date and Time, the issued and outstanding USDC tokens do not exceed the balance of the US Dollars held in custody accounts.”

The USDC stablecoin is an Ethereum (ETH) based ERC20 token, first announced in May last year, shortly after the company raised $110 million in an investment round.  In December, the company released the stablecoin’s second third-party audit — also issued by Grant Thornton — showing the firm also held a surplus of U.S. dollar reserves to back the circulating coins. The first audit was published Nov. 20 and provided information through Oct. 30.

Will Tether Do An Audit?

Since Inception, Tether has abstained from releasing an independent report that shows its US dollar reserves which are the underlying asset for its stablecoin. And now with competition coming in from other stablecoins, who have been fairly transparent on the underlying USD reserves, life is slowly becoming difficult for Tether. Recent research by Diar showed Tether’s dominance over the stablecoin market plummet by 16% – the equivalent of nearly $1.1Bn on the back of transparency and banking woes. The research showed Tether dominance, plummeting from 99% in January 2018 to 69% in January 2019.