Circle, a major fintech company and issuer of the USD Coin (USDC) stablecoin, has released a report detailing the structure and management of USDC reserves.

According to the report, approximately 80% of USDC reserves are invested in short-duration U.S. Treasuries, with the remaining 20% held as cash deposits in global systemically important banks (GSIBs). 

"The reserve is fully transparent and subject to third party assurance that there are sufficient assets to meet liabilities. It does not contain any other assets of different risk profiles. " Circle said in the announcement, highlighting the importance of transparency and accountability.

Circle describes GSIBs as "widely recognized as the safest banks, with the highest capital, liquidity and supervisory requirements in the world", saying its one of their steps to reduce risk from the banking system.

The firm also holds modest funds at transaction banking partners in support of USDC liquidity operations.

In addition, Circle expressed its interests in holding cash deposits in Federal Reserve. The firm stated: 

"We have always aspired to hold the cash portion of the USDC reserve directly with the Federal Reserve, fulfilling our vision of USDC as true tokenized cash. To do so will require stablecoin legislation. Since Circle’s founding in 2013, we have been at the forefront of calls for federal regulation of the digital asset industry, and we are optimistic that Congress will act."