Thread by @SVR13

In the week, in which Circle + Coinbase pledge to shake up USDC's assets, we've got the latest attestation (thanks to @DesoGames for spotting it - it's currently only up on Centre's page). Attestation for June 30, signing off date of Aug 13. 1/?

@DesoGames Little change in the small print though we do now have this definition of segregated accounts added in the footnotes. 2/?

@DesoGames Reserve breakdown has changed since May attest.
-Cash + equivalents -$1.7bn
-Corporate bonds +$2.9bn
-Yankee CDs +$0.8bn
-US treasuries +$0.6bn
-Commercial paper +$0.4bn,
-Municipal + US Agency bonds +/-0
Cash, equivalents & treasuries are 58% of total -3%
3/?

@DesoGames Small changes: Cash + equivalents don't mention "Government Obligation" MMFs; cash equivalents described as "short-term, highly liquid investments that are readily convertible to known amounts of cash"; treasuries definition added + formula for weighted average credit rating 4/?

@DesoGames It follows Coinbase's reversal on USDC being 1:1 backed by dollars. As noted by @rohangrey @KyleSGibson and others, the lack of explanation from Coinbase on the decision and the fact that reserve policy changed in just four months is deeply unusual in itself. 5/?

@DesoGames @rohangrey @KyleSGibson USDC's reserve policy changed in March 2020 when "approved investments" first appeared. A spokesperson said they had nothing to add when asked for clarification; they pointed to the tweet that "changes in the investment portfolio...began in May 2021." 6/?

@DesoGames @rohangrey @KyleSGibson So - USDC's attestation shows the kind of assets they want to make up their reserves by September has fallen. It also highlights the leeway stablecoin operators have on disclosures: asset breakdowns came a year after "approved investments" first appeared 7/?

It is important not to write this off as 'all's well that ends well' or evidence of a system functioning well, said @rohangrey : "Even if it is better for the foreseeable future, it's by the grace of God." 8/8