Circle Restarts U.S. Treasury Purchases in BlackRock-Managed USDC Reserve Fund
Repurchase agreements will keep being part of the reserve fund, Circle’s chief financial officer said Wednesday during a company call.
Stablecoin issuer Circle Internet Financial has started buying U.S. Treasury bills as a reserve asset for its $28 billion USD Coin () after amid the U.S. debt ceiling standoff last month.
The (USDXX), which is managed by asset management giant BlackRock (BLK), has started “building up our direct holdings of Treasuries,” chief financial officer Jeremy Fox-Geen said Wednesday during a company call that CoinDesk attended.
The fund will also keep repurchase agreements () as part of the reserves, Fox-Geen added.

The development came after Circle the backing of its stablecoin last month to protect USDC from a potential fallout if the U.S. government failed to increase its ability to borrow and default on its debt.
CEO Jeremy Allaire said in early May that the firm would not hold bonds maturing beyond the end of the month. By June, CoinDesk reported that the reserve fund into involving systemically important banks such as Goldman Sachs, BNP Paribas, Bank of America and Royal Bank of Canada.
Eventually, U.S. lawmakers struck a deal to increase the nation’s debt limit and President Joe Biden the legislation on June 3, averting calamity on financial markets.
As of June 20, Circle added $2.2 billion of T-bills to the fund, while repos constituted some 90% of the fund’s $24.7 billion in assets, according to BlackRock’s website. The company held an additional $3.5 billion in , the “vast majority, over 90%” stored at the Bank of New York Mellon, Fox-Geen said.
Edited by James Rubin.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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In 2025, the stablecoin market shows strong signs of growth. Research indicates that the market cap of USD-pegged stablecoins has surged 46% year-over-year, with total trading volume reaching $27.6 trillion, surpassing the combined volume of Visa and Mastercard transactions in 2024. The average circulating supply is also up 28% from the previous year, reflecting sustained market demand. Once used primarily for crypto trading and DeFi collateral, stablecoins are now expanding into cross-border payments and real-world asset management, reinforcing their growing importance in the global financial system. More banks and enterprises are starting to issue their own stablecoins. Standard Chartered launched an HKD-backed stablecoin, and PayPal issued PYUSD. The CEO of Bank of America has expressed interest in launching a stablecoin once regulations permit (via CNBC). Fidelity is developing its own USD stablecoin, while JPMorgan Chase and Bank of America plan to follow suit when market conditions stabilize. Meanwhile, World Liberty Financial (backed by the Trump family) has introduced USD1, backed by assets such as government bonds and cash.

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