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Saying that they’re backed by cash reserves is misleading. Yes, they do hold some cash to back the value of the coin, but that’s less than half of the total bac
by Armisael16 5y ago
Saying that they’re backed by cash reserves is misleading. Yes, they do hold some cash to back the value of the coin, but that’s less than half of the total backing.
CDs and treasuries and commercial paper are pretty solid stuff - but they definitely aren’t cash.
- yebyen 5y agoUSDC will no longer be backed by corporate bonds or commercial paper: https://www.bloomberg.com/news/articles/2021-08-23/coinbase-circle-to-move-all-usdc-reserves-into-cash-treasuries https://www.bloomberg.com/news/articles/2021-08-23/coinbase-... I don't know how you feel about short term treasury bonds, but I think they are nearly as good as cash. Slightly less liquid but with some return.