Circle knows that transparency is one of it’s selling points, so they appear to be driving that point home with USDC reserves.

Jeremy Allaire:  As part of our commitment to increasing transparency and disclosure around USDC, today we’re publishing our first monthly breakdown of the USDC reserve assets, by each and every Treasury Bond and list of cash reserve custodians.

We are not done, we are continuing to do more to provide even greater transparency, including seeking permission from our banking partners to disclose how much cash at each institution, as well as moving towards daily public reporting on reserve assets. We will get there.

Community Reaction: 

Thank you for the disclosure. Are these treasuries ever loaned out to anyone for yield or encumbered by any debts?

Any information you can share with us about your remote bankruptcy procedure?

We’re seeing more and larger spikes in undelivered and unrecieved collateral (Fail to Receive and Fail to Deliver). Scramble for collateral is real, liquidity issues are real. Is this a risk you’ve consider and analyzed?

I guess that Circle offers us just to believe in what they show and still have the courage to call it a step towards the audience.  You’d better order an audit from someone else or have all the auditors you bought already run out?

This is not even from a reputable accounting firm.  There is no transparency without an audit. This document should be made pay the third-party company, not by the circle.

It’s unreasonable to expect a monthly audit. This is the yearly financial audit.

We believe that Circle should release a clear and public report on their internal audits to ensure that the global community can arrive at an informed decision when weighing the company’s value and future potential.

I see a lot of people looking at filing disclosure and starting a rumor mill. Let’s address some of that. a. Circle reported financial losses from operations – there is nothing surprising about this. Every venture backed company has a choice between profitability or growth.

So what? Do you really want us to believe that things are fine and there is no reason to worry? This is just a drop in the ocean and that makes me even more worried since we know nothing about what is actually hidden behind USDC reserves and how true they really are.

In summary, most people should care about two things: a. How strong is Circle’s balance sheet – can they become profitable before they run out of cash from operations or financing activities. b. How does Circle manage counter-party risk (deposits with US financial institutions)