A statement from Circle Internet Financial said that the company is “deepening” its partnership with Blackrock, the world’s largest asset manager. The company announced that USDC reserves have been transferred to a Blackrock-managed fund, which is registered with the SEC.
Circle Partnering With Blackrock
During the middle of April 2022, Circle announced that the company had entered a partnership with Blackrock Inc, Fin Capital, Fidelity Management, and Marshall Wace LLP to invest $400 million.
In the announcement, Blackrock explained how Circle would expand its existing relationship with the New York-based multi-national investment company. Additionally, Circle announced that it would use Blackrock to manage USDC reserves.
A few months later, Circle announced that it would deepen its relationship with Blackrock, and Circle has begun transferring USDC reserves to Blackrock-managed funds.
Jeremy Fox-Green, Circle’s chief financial officer (CFO) said “Through our partnership with Blackrock, we have begun investing in the Circle Reserve Fund to manage a portion of the USDC reserves.”
“We expect the reserve composition will continue to be approximately 20% cash and 80% short-duration U.S. Treasuries,” he added.
In the Circle Reserve Fund (USDXX), current income is sought in a way that is compatible with liquidity and principal stability. It is owned by Circle, and at least 99.5% of its assets are invested in cash, notes, and bills issued by the U.S. Treasury.
Circle plans to be fully transitioned by March 2023, according to its announcement.
The Launch of Euro Coin
With Euro Coin, Circle has made a European take on the popular stablecoin USDC, Euro Coin works similarly to USDC but is pegged to the euro instead of the dollar, Euro Coin has been live on the Ethereum blockchain since June.
A press release by Circle said FTX will support Euro Coin when it launches on Solana, in addition to other decentralized finance protocols expressing interest in supporting the stablecoin.
“The availability of Euro Coin on Solana unlocks new use cases for instant FX, provides optionality for traders with a new base currency, allows for Euro Coin lending and borrowing, and will be available alongside USDC as a payment currency in Solana Pay,” said the head of payments at Solana Labs, Sheraz Shere.