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USDC emitters group compensates for treasury stocks in the middle of the US debt upper limits
The StableCoin emittent Circle no longer has treasury stocks that are due beyond the beginning of June because it does not want to be involved in a possible US debt failure. The development follows the warning of US finance minister Janet Yellen that the government might not be able to pay for its bills by June 1st and to later delete payment at a later date, which triggered widespread concern. In a recently led interview, boss Jeremy Allaire found that Circle did not want to endanger itself "by a potential violation of the U.S. government's ability to pay their debts". Therefore, the fintech company ...
USDC emitters group compensates for treasury stocks in the middle of the US debt upper limits
The StableCoin emittent Circle no longer has treasury stocks that are due beyond June because it does not want to be involved in a possible US debt failure.
The development follows the warning of US Finance Minister Janet Yellen that the government might not be able to pay for its bills by June 1st and to later arrive at payment, which triggered widespread concern.
- In a recently led interview, boss Jeremy Allaire found that Circle does not want to “pay off her debts” by a potential violation of the ability of the US government.
- Therefore, the FinTech company has adapted its reserve mix to support the USDC by switching to short-term US state bonds to avoid catastrophic consequences.
- The Circle Reserve Fund Disclosures managed by Blackrock showed that the current stocks are due on May 31st.
- A treasury bill, also called T-Bill, is a short-term government bond that is secured by the US Ministry of Finance and can have run times between four and 52 weeks
- succeeds in the Republicans and Democrats to reach an agreement, the country could run the risk of no longer being able to serve its government debt. In order to avoid a loss of payment, both sides must raise the debt limit.
- However, negotiations on raising the debt limit had a bumpy start this week because the talks in the White House ended without agreement.
- As far as Circle is concerned, his stablecoin-USDC-coupled to the US dollar-after the collapse of Silicon Valley Bank (SVB), suffered a devaluation at the beginning of the year. The token has stabilized since then and is currently in a market capitalization of $ 30.12 billion.
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