An attestation report released on Wednesday by the professional auditing firm, Grant Thornton LLP, confirmed that crypto startup Circle had enough fiat reserves to back the total supply of its USDC stablecoin at the end of 2018.
As of December 31, 2018, the total value of stablecoin in circulation was 251,211,148 USDC, a figure that is slightly below the company's fiat reserve of $251,211,209 on the said date.
At the time of compiling this report, a total of 363,981,612 USDC is in circulation which suggests perhaps that the startup has toppled it's fiat reserves by over $100 million within the first 17 days of 2019.
Meanwhile, a previous audit released by the same auditing firm in November confirmed that Circle had zero issues because the fiat reserve ($127.5 m) was on par with the total supply of ($127.4 USDC) at the end of October 2018.
Why Did Stablecoin Companies Embrace Monthly Audits?
New stablecoin companies have embraced the art of regular monthly audit because of the issues surrounding popular stablecoin Tether (USDT).
Although a report in December claimed to provide evidence that its issuers Tether Ltd. have enough fiat reserve to back the current circulating supply, earlier accusations mean the stablecoin is now a controversial topic and is still being investigated by the U.S Department of Justice.
So, monthly audit reports help to maintain public trust in stablecoin firms and is one of the reasons why the adoption of this type of cryptocurrencies surged by 1032% in November.
Other stablecoin companies that released attestation reports this month include Gemini which had about $91 million in reserves to back GUSD circulation at the end of the year and Paxos which had approximately $142 million to support its PAX supply.
Social media giants Facebook are also looking to launch a stablecoin and have started research into market.
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