Circle, the blockchain technology firm behind the US dollar-backed stablecoin USDC, has recently taken measures to mitigate risk and ensure the safety of its users’ funds. In light of recent bank failures, Circle has shifted its strategy and now holds a significant portion of the cash reserves at one of the world’s 30 global systemically important banks (GSIBs).

A GSIB is recognized as one of the safest banks in the world, with high capital, liquidity, and supervisory requirements. This move by Circle is aimed at reducing any potential risk that may arise from the banking system.

Moreover, Circle has revealed that it has always aimed to hold the cash portion of the USDC reserve directly with the Federal Reserve, but this will require stablecoin legislation. The company has been a vocal proponent of federal regulation of the digital asset industry since its founding in 2013, and it remains optimistic that Congress will take action.

In addition, Circle has assured its users that the USDC reserve is held in segregated accounts, which means that it cannot be used for corporate purposes. In the unlikely event of a Circle bankruptcy, the USDC reserve would remain segregated for USDC holders and would not be part of the bankruptcy estate.

It is worth noting that Circle has a current corporate cash reserve in excess of $800 million, and it stands behind its obligations to USDC holders with all its corporate resources, including external capital if necessary.

These measures taken by Circle demonstrate its commitment to ensuring the safety and security of its users’ funds, and its efforts to establish itself as a trusted and reliable player in the digital asset industry.