A quick note on a significant development in the Circle/USDC/stablecoin drama, which I’ve written about on several occasions. After 46 days, Circle finally released their May attestation report this morning. Once again, the company made important changes to their attestation language. Most critically, Circle finally released composition details of the reserves backing their stablecoin, USDC.
Let’s start with the language change. In the April attestation report, Circle described their reserves as follows [emphasis added]:
“US Dollars held in custody accounts are the total balances in accounts held by the Company at federally insured US depository institutions and in approved investments on behalf of the USDC holders at the Report Date.”
The words “approved investments” provoked many questions that the company seemed hesitant to answer. In the latest report, the language reads: