Coinbase Says USDC Reserves to Be Held in Cash, Short-Term Treasurys From September

Coinbase President and COO Emilie Choi said in a tweet that the U.S. crypto exchange’s recent statement of every USDC being “backed by a dollar in a bank account” could have been more clear. Coinbase removed that language from its site about two weeks ago.

• Coinbase "should have moved faster" to update such statements on its website when Circle shared its May report on USDC reserves in late July, Choi wrote. "That was a mistake and Coinbase takes ownership for that."
• Choi also wrote that "USDC has always been fully backed by reserves equal to or greater than the USDC in circulation, giving users the ability to always redeem 1 USD coin for US$1.00."
• Changes in the investment portfolio for USDC reserves began in May 2021 and will not extend past September, Choi wrote.