Circle releases audit to confirm that USD Coin is 100% backed

19 May, 2019
by David Borman
News
Circle releases audit to confirm that USD Coin is 100% backed

It is being reported by Cointelegraph that Goldman Sachs-backed crypto startup, Circle, has just released a third-party audit that confirms that the company has enough USD reserves to fully back its stablecoin. This comes at a time when other popular stablecoin Tether has come under fire recently for admitting it is not 100% backed.

The audit was performed by Grant Thornton LLP, an accounting firm based in Chicago. Circle has released the report in an attempt to be 100% transparent about its reserves.

According to the audit, as of April 30, 2019 at 11:59 PM Pacific Time, Circle has $293,351,374 in reserve to back USDC, and has issued only 293,184,174 tokens so far. This clearly means outstanding tokens do not exceed the reserves held by the company.

This is undoubtedly reassuring news for investors, as many are wary after the recent issues reported by Tether and Bitfinex. Full transparency is the key, many believe, to stablecoins being accepted as stand-ins for fiat.

Circle is expected to continue to make audits openly available so that investors can have faith that every USDC issued is backed by an actual fiat dollar. Will it stay successful? Stick with Chepicap for all updates!

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