Circle releases audit, affirming their stablecoin

17 Jan, 2019
by Arthur Sillers
News
Circle releases audit, affirming their stablecoin

The stablecoin Circle (USDC) has been fully audited, and according to an attestation released by the company which launched it, Circle.


Tether, which long stood as the top stablecoin, has had some controversy surrounding its claim that it has each and every USDT coin backed up in fiat currency. This controversy has knocked down excitement over stablecoins, but competitors have begun to take USDT's place, and with them commentors are becoming interested in stablecoin's possibilities again.

Read more: Does Tether really have $1.8 Billion back up funds? New report casts doubts

Circle’s audit, conducted by the Grant Thornton LLP accounting firm, directly states ‘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.’ While this is certainly a positive announcement for Circle itself, it also will bolster stablecoins in general, which some have pointed to as the hopeful agent to bring another wave of crypto adoption.

Speaking to Cointelegraph, Luzius Meisser of the Swiss Blockchain Association, stated ‘Stablecoins are a precondition to enable average companies to bring their equity onto the blockchain.’ His point was essentially that because companies calculate their revenue and operations in fiat currency, introducing unstable cryptocurrency creates a number of difficulties. Stablecoins, by contrast, offer an easy go-between for companies to digitize their money.

At that point, its a much smaller commitment to start trading in more traditional cryptocurrencies. If private companies began digitizing their equity, it would buoy the crypto market back to former highs.

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