Thread by @dkcrypto13

I couldn’t sleep before I researched this further.

Let’s put to rest the assertion that $USDC is just the new $USDT and just as sketchy at #tether because the monthly attestations by a Top auditor aren’t full audits. This can all be wrong, but think for yourselves:

For every month, without fail, Grant Thornton attests that the USD held by @circlepay for $USDC match the token in circulation. This report is not, as with #tether, an irregular, unclear document. It is very clear.

Check the screenshots.

You got an auditor saying “we attest that we have seen the cash or approved investments” in the value of outstanding token every month (!).

Note that auditor liability increases with value, so yes the 2021 reports have been later in general than in 2020, but that is to be…

… expected when the value goes into 10s of billions and the April attestation happened 38 days after end of month. That is 100% acceptable for any kind of attestation of this magnitude (they actually account for the token as well) and risk to the auditor.

But you may say “Ah, but we do not know what approved investments are” and you are right, I think @circlepay could be A LOT clearer on this point and it should enter into the attestation as well. But its not impossible to find:

$USDC reserves according to its CEO (who is a US, regulated individual) adhere to the Centre Consortium reserve investment policy.

That policy is not simple to find, but it is available. As you can see below, it limits investments to “instruments that are approved by the money transmission statutes of US states”. That one is actually much simpler to look up…

For example, for New York it means practically anything interest bearing (!), traded in the US, rated AAA to A (top 3 rating levels) by a public rating agency for considerable time, as well as bank deposits and bank notes,etc.

So there you have it: according to a top auditor, $USDC is backed by cash and the absolutely highest rated bonds as of 38 days ago.

Anyone in finance accepts this as a cash equivalent. It’s actually backed by more assets than your bank account (though that has gov’t insurance).

Obviously I am human and I can make mistakes. But just like #tether talks like a scam, walks like a scam and acts like a scam, $USDC talks, walks and acts like a regulated US institution. So can we just put this unfounded speculation about their backing to rest? Its unsustainable

Oh and in case you wanted to read a really good piece on #tether s black swan potential, this is it:

Still “cashing out” into $USDT anon?

https://twitter.com/muellerberndt/status/1405890363923914753