Less than a month after launching USDC, Circle, the company which issues the stablecoin, has presented an audit about their current token reserves, with the attestation results coming from an accounting firm, Grant Thornton LLP.
The results reveal that each USDC issued so far by Circle is backed 1:1 by the US Dollar while their reserves had $4000 more than the total number of tokens issued until October 31.
“As of October 31, 2018, at 11:59 PM UTC:
USD Coin (“USDC”) tokens issued and outstanding = 127,408,827 USDC
US Dollars held in custody accounts = $127,412,240.89.”
confirmed the attestation result which was carried out in line with accounting principles.
In it's concluding lines, Grant Thornton LLP said that Circle's activity with their stablecoin was “correctly stated” in the results.
Meeting Up With New Industry Standards
Unlike controversial stablecoin Tether who has had some issues with their banking partners in the past or submitted questionable audits, newer stablecoins such as Gemini Dollar, Paxos Standard, and the USDC have embraced the culture of hiring an accounting firm monthly to issue attestation results.
Such a measure is ideal because it reinforces investors confidence in the stablecoin and confirms the fact that the prices are not being manipulated to enrich the token issuers.
Also, if any issue arises about a stablecoin, a third party accounting firm is always used to call the token issuers to order, so it makes sense that the attestation is issued by a trusted accounting firm.
The three newest stablecoins are currently setting and following this standard for stablecoins, and newer ones will likely follow procedure. It will keep stablecoins truly pegged 1:1 to its reserve and allowed them to stay clear of controversy like Tether (USDT) whose value on the global crypto market has been less than $1 per USDT for nearly two months.