Circle, the American company issuing the stablecoin USDC, announces that it will change its audit firm for the verification of its reserves from this year 2023. Deloitte is one of the largest audit firms in the world, in particular a member of the group of Big Four. For the occasion, Circle would like to recall its wishes for transparency with regard to the state of its reserves.
Circle adopts the services of Deloitte
Circle, the issuing company of the USDC stablecoinrevealed in its latest report titled “State of the USDC Economy” that its future audits would be carried out by Deloitte.
Founded in the 1840s in London, Deloitte is the oldest audit firm in the world and now sits in the Big Four group, which also includes Ernst & Young (EY), KPMG and PricewaterhouseCoopers (PwC). Between them, they employ more than 1.1 million people worldwide and are considered the largest audit firms in the world.
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An announcement that comes when the Mazars officewhich notably carried out proof of reserves audits of the Binance, KuCoin and Crypto.com exchanges, suddenly stopped offering its services to companies operating in the cryptocurrency industryciting “ concerns about how these reports are understood by the public “.
For its part, Circle has so far benefited from audits by the firm Grant Thorntonwhich have each been transmitted to the Securities and Exchange Commission (SEC) in accordance with US regulations.
The USDC issuer took advantage of this, via its report, to remind the structural security of its stablecoinof which 80% of the reserves are made up of United States Treasury securities with a maximum maturity of 3 months, and the rest of which is available in the form of cash distributed within segregated accounts in various American banking establishments.
Effectively, as a dollar-backed stablecoin, USDC reserves must be able to to insure the tokens in circulation with real money at a minimum ratio of 1 to 1. Otherwise, the latter would instantly devalue. To find out more about this mechanism, we invite you to read our sheet dedicated to the USDC.
In addition, Circle wanted to support its wishes for transparency vis-à-vis its users through its report:
“Our pioneering history of transparency underscores our commitment to providing USDC holders and the general public with open and timely reporting on how we minimize risk and maintain liquidity in the USDC reserve. »
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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