Stablecoins are cryptocurrencies with a one-to-one parity with fiat currency. In this light, firms have to ensure that their reserves are up to date. Circle, in fulfillment of that responsibility, released a third-party attestation on USDC bank reserves.
According to the official statement, independent accounting firm, Grant Thornton LLP issued the attestation.
In particular, the attestation is a statement regarding the US dollar reserves backing USD Coin (USDC). The report holds that there are 127,408,827 USDC made up of both the issued and outstanding token. On the other hand, Circle has in reserves $127,412,240.89 USD, which is the amount of dollars backing up the stablecoin.
Third-party USDC Attestation Confirms Integrity of Circle’s Business Strategy
In particular, the report reads, “In our opinion, the Reserve Account Information in the accompanying Reserve Account Report as of October 31, 2018, at 11:59 PM UTC adds up, based on the criteria set forth in the Reserve Account Report, in all material respects.”
Further, the accounting firm, Grant Thornton, clarifies in the report that the “examination happened in accordance with attestation standards that American Institute of Certified Public Accountants maintains.”
Interestingly, the report covers other very pertinent issues regarding cryptocurrencies in general. According to the attestation, most of the cryptocurrency sector still emphasizes high levels of privacy. While it is possible to publicly view the keys associated with the digital assets, the owners are anonymous.
Essentially, the only evidence of ownership of crypto-assets is the proof of private keys. As such, any crypto holder who loses his/her private keys loses ownership of the crypto-assets.
Further, the report informs that cryptocurrency related transactions happen over a blockchain network. As such, one cannot reverse the transactions even when accidentally completed. Usually, reversing a transaction requires blockchain-wide consensus, something which is impossible to achieve.
Another highlight of the report touches on the regulatory uncertainty surrounding the cryptocurrency sector. According to the report, it is not yet possible to determine the effect of available, if any, regulations on crypto-assets.
Therefore, as Circle releases third-party attestation on USDC bank reserves, there are still issues that stick out. However, various reports indicate that stablecoins are taking over the cryptocurrency sector. This is because they provide more stable channels to invest in the market.
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