All balances in Stables are held in $USDC, a fully collateralized stablecoin backed 1-for-1 with a dollar sitting in its reserves, which can be redeem 24/7 for the equivalent amount of USD.
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​Circle, $USDC issuer, holds the reserves backing $USDC in the most liquid and conservative assets possible: cash and 3-month Treasury Bills.
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The 20% of reserves held in cash are kept with leading American banks. The remaining 80% held in 3-month Treasury Bills are bought by asset manager BlackRock and held in custody by The Bank of New York Mellon, two of the largest and most trusted financial institutions in the world.
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Circle is regulated under US state money transmission laws like major payments companies. By law, unlike a bank, exchange, or unregulated institution, Circle can’t lend reserves out, can’t borrow against its reserves, or use its reserves for operational reasons. Even in event of bankruptcy, creditors can’t come after Circle’s reserves.
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