Please do not make hasty decisions in this short period. Circle holds 77% of their reserves in 1-4 month T-Bills and earns around 1.5B in annual interest income from that treasury holdings. Even in the worst case (without a federal rescue plan) they will face 300M deficit. For Circle, this shouldn’t be too much of a problem.
Changes to the reserve to respond to the current turmoil could do a lot of damage. It would be wise to just wait for the storm to pass.
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Thanks, Erayda! Yes, and despite the events around circle the reserve is still overcollateralized and diversified, crucial in times like these. We will continuously monitor the market, as over the weekend there will be periods of intense pressure.
You are welcome Marcus. But I see some transaction on reserve accounts! I hope you didn’t rush to sell USDC at low prices to minimize risk. The purpose of my warning was to deter you from such a thing. Circle made a statement and said that it will cover any missing liquidity in Silicon Valley Bank using corporate funds.