Circle Stablecoin USDC is fully covered by Bank reserves

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Circle has announced that it has commissioned an independent audit firm, Grant Thornton LLP, to review monthly reports, the dollar reserves, the Circle has to cover the Stablecoin USDC. In the result of the first report Grant Thornton LLP, comes to the conclusion that the Circle Dollar is fully covered with the reserves of US dollars.

Grant Thornton LLP, the U.S. branch of Grant Thornton International, noted in his report of 16. November with that Circle to 31. October 2018 127.412.240,89 USD in deposits has kept, and thus the at this time in circulation 127.408.827 USDC-Token is fully covered. According to the results of Circle has thus, in fact, about 4,000 dollars more than it spent in Token of his / her accounts, as it is to USDC.

In the report, Grant Thornton notes that the audit was conducted in Accordance with the American Institute of Certified Public Accountants specified in attestation standards,” which means that “nature, timing and extent of procedures selected depend on our judgment, including an assessment of the risks of material misstatements of the reserve account information, whether due to fraud or error”.

Specifically, it says in the report:

Our audit was conducted in accordance with the American Institute of Certified Public Accountants specified in the confirmation standards. Those Standards require that we plan the audit and perform to obtain reasonable assurance about whether the reserve account are given information in the attached reserve account-the report on the basis of the reserve account report set out criteria in all essential aspects correctly. […] Nature, timing and extent of procedures selected depend on our judgment, including an assessment of the risks of material misstatement of the Reserve account information, whether due to fraud or error.

 

In the assessment of risks of material misstatement we have the system of internal control, the report is for the creation of the corresponding Reserve account report and the Reserve account information in the corresponding Reserve account-related, not taken into account, in order to develop, taking into account the circumstances of appropriate procedures, however, to have an opinion on the effectiveness of such internal control system. Accordingly, no such opinion shall be delivered. We are of the view that the evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

Grant Thornton LLP also concludes that the Circle that the information provided is true and correct:

In our opinion, the reserve account will be account information in the attached Reserve report as of March 31. In October 2018 23:59 UTC on the basis of the reserve account report set out criteria in all essential aspects correctly specified.

Other Stablecoin-issuers, such as Gemini and Paxos have in the past few weeks certifications from auditing companies zurDeckung your Stablecoins published. Even if it is not full Audits, they are, in contrast to the reserve, evidence of the Tether, which is currently the largest Stablecoin.

The controversial company has at the beginning of this month, a Letter of Deltec Bank and Trust Limited submitted that it proves that there is a “Portfolio present value” of 1.8 billion dollars, although it is unclear whether the funds in cash or other assets be considered.

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