According to cryptocurrency firm Circle Internet Financial, the company is “deepening” its partnership with Blackrock, the world’s largest asset manager. Circle has revealed that it has begun moving USDC reserves into funds managed by Blackrock, which is registered with the U.S. Securities and Exchange Commission (SEC).
Circle Deepens Relationship with World’s Largest Asset Manager BlackRock
Mid-April 2022, Circle Detailed The company has signed investment agreements with Blackrock Inc., Fin Capital, Fidelity Management and Research, and Marshall Wace LLP. The investment is his $400 million funding round, and in the announcement, Blackrock explained how Circle and the New York-based multinational investment firm will expand the existing relationship between the two of his companies. Did. It was also revealed that Circle will use BlackRock to “manage the significant assets of the reserves backing the USDC.”
Six months later, Circle revealed it would deepen its relationship with Blackrock on November 3, 2022, and Circle would sell USDC’s reserves to Funds managed by BlackRock“Through our partnership with Blackrock, we have begun investing in the Circle Reserve Fund to manage a portion of our USDC reserves,” explained Jeremy Fox-Green, Circle’s CFO. did. His CFO of Circle added:
We expect the reserve mix to continue to be approximately 20% cash and 80% US Treasuries.
The Circle Reserve Fund (USDXX) investment objective is to “seek current income commensurate with the liquidity and stability of the principal”. Circle is the sole investor and the Fund invests “at least 99.5% of its total assets in cash, U.S. Treasury bills, bills and other debt.” According to Circle’s announcement, the company hopes to make the full transition by the end of March 2023.
Number of USDC Stablecoins in Circulation Drops Significantly, Circle’s EURC Token Will Be Backed by Solana Next Year
Circle says Bank of New York Mellon owns the fund because the financial institution is the custodian of USDC’s reserves, which are already made up of Treasuries. Circle Announcement on Nov. 3 Follows Number of USDC in Circulation rapidly declining Last Several months.
In addition, a circle in mid-June announced Launch of a euro-backed stablecoin called Eurocoin (EURC). Marcus Boorsstin, his director of engineering at Circle, announced at a Solana-centric conference this week that EURC will be created in Solana next year.
What do you think of Circle’s blog post about deepening its relationship with Blackrock, the world’s largest asset manager? Let us know what you think about it in the comments section below.
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