According to news from PANews on June 22, Circle Internet Financial, a stablecoin issuer, has begun to purchase U.S. Treasury bonds as part of USDC reserve assets. During the U.S. debt-ceiling standoff last month, the company sold all U.S. Treasuries. The Circle Reserve Fund (USDXX), managed by asset management giant BlackRock, has begun "directly holding U.S. Treasuries," Chief Financial Officer Jeremy Fox-Geen said on a conference call Wednesday. Fox-Geen added that the fund will also maintain repurchase agreements (repos) as part of its USDC reserves.

Last month, Circle adjusted the structure of USDC’s reserve assets to protect USDC from a potential U.S. debt default. Chief Executive Jeremy Allaire said in early May that the company would hold no Treasuries maturing beyond the end of this month. As of June, the reserve fund had transferred all assets to a tri-party repo involving systemically important banks including Goldman Sachs, BNP Paribas, Bank of America and Royal Bank of Canada.
Circle added $2.2 billion in U.S. Treasuries to the fund as of June 20, while repurchase agreements make up about 90% of the fund’s reserve assets, according to BlackRock’s website. Fox-Geen said the company also has $3.5 billion in bank deposits, of which "the vast majority, more than 90 percent" is deposited with BNY Mellon.