As a stablecoin, USD Coin (USDC) is pegged to the value of the U.S. dollar. The reserves of currency upholding this value will only be cash and bonds going forward.
Circle reserves expanded beyond cash and cash equivalents in May, 2021, and the company provided a more detailed breakdown of reserve composition in July, adding clarity and insight into the funds backing USDC. Mindful of community sentiment, our commitment to trust and transparency, and an evolving regulatory landscape, Circle, with the support of Centre and Coinbase, has announced that it will now hold the USDC reserve entirely in cash and short duration US Treasuries.
Check It Out: USD Coin Will Be Backed By Pure Cash and US Treasury Bonds