USDC issuers have started investing in CRF.
Its increasing use might provide indirect access to Fed’s Reverse Repo Program (RRP).
This will make USDC a non-bank hybrid between CBDC and insured deposit.
Jeremy Fox-Green, Circle CFO, has recently announced that stablecoin issuers have started investing in CRF (Circle Reserve Fund). And the prominent stablecoin USDC might be getting a backdoor entry to Federal Reserve’s risk-free liability, and the partner BlackRock is applying for the Fed’s reverse repo program (RRP).
The Circle is qualified as an indirect investor in a government money market fund. The reserve comprises 20% cash held at the Bank of New York Mellon and short-term US Treasuries 90%.
“These reserve funds ought to increase investors’ confidence in the redeemability and stability of their USDC holdings, 1:1 against USD at any time.” – Fox-Green said.
Furthermore, Circle is set to convert all its existing Treasury holdings to CRF (Circle Reserve Fund) by March
We współpracy z: https://www.thecoinrepublic.com/2022/12/09/more-power-to-usdc-might-get-ancillary-access-to-feds-rrp/
