Coinbase, Circle Say USDC Reserves to Be In Cash, Treasuries (1)

A consortium including Coinbase Global Inc. said all the reserves of the second-largest cryptocurrency stable coin will shift into cash and short-term U.S. Treasuries, forgoing riskier investments.

The reallocation of the assets backing USDC, a $27 billion stablecoin, marks a swift change from July when consortium member Circle Internet Financial Inc. said that the reserves included corporate bonds and commercial paper.

Until August, Coinbase’s website falsely described USD Coin as backed completely by dollars “in a bank account.” The company changed the description after being contacted by Bloomberg News earlier this month.

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