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Circle’s Treasury Bill Reserves and the Future of USDC

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On March 11, Hal Press, CEO of North Rock Digital, a hedge fund, tweeted that Circle held 77% of the reserves in the treasury bills of 1 to 4 months, providing…

Circles Treasury Bill Reserves and the Future of USDC

On March 11, Hal Press, CEO of North Rock Digital, a hedge fund, tweeted that Circle held 77% of the reserves in the treasury bills of 1 to 4 months, providing a lower limit of 0.77 for USDC; The total loss of Circle is expected to be 0.8% to 1.5% of USDC at most; Therefore, we have chosen to continue to buy at US $0.88, and have previously bought at US $0.935; The USDC is likely to be completely re-anchored eventually.

Hal Press: USDC is finally or will be completely re-anchored

Analysis based on this information:


In a recent tweet, Hal Press, the CEO of North Rock Digital, a hedge fund, shed light on Circle’s USDC, revealing that the company holds 77% of its reserves in treasury bills with a maturity of 1 to 4 months. This disclosure provides a lower limit of 0.77 for the USDC’s stability, indicating that the stablecoin is less likely to experience significant price fluctuations due to Circle’s significant treasury bill holdings. According to Press, Circle’s total loss on these treasury bills is expected to be at most 0.8% to 1.5% of USDC, a relatively nominal amount.

Despite the potential losses, Press remains optimistic about USDC and has continued to buy it at a lower rate of US $0.88, having purchased it previously at US $0.935. This reveals a semblance of confidence in the stablecoin’s long-term sustainability and resilience to any short-term market volatility. Press’s predictions are further supported by Circle’s pragmatic approach to managing its treasury bills, keeping them in cash equivalents for quick access in the event of any unforeseen circumstances.

However, Press’s most compelling prediction is that USDC is likely to undergo a complete re-anchoring eventually, indicating a change in the way stablecoins are currently anchored to traditional assets. The current model of anchoring stablecoins to traditional assets like USD or gold has been challenging, as stablecoins’ values fluctuate with the underlying assets, thereby denting the stability of the cryptocurrencies. It’s, therefore, refreshing to see that some stakeholders are considering alternative models and redesigning the way stablecoins work.

In conclusion, Circle’s USDC is off to a good start, thanks to the company’s pragmatic approach to managing its treasury bills, which provides a sturdy foundation for the stability of the stablecoin. With Hal Press’s predictions of USDC eventually undergoing a re-anchoring, the stage is set for revolutionary changes to the way stablecoins operate in the increasingly complex digital currency landscape.

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