Circle Internet Financial Ltd., the world's second-largest stablecoin issuer by market capitalization, has adjusted its reserves to short-dated US Treasuries as the company is preparing for a possible US debt default.
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In a commentary to POLITICO, Circle boss, Jeremy Allaire, said the company no longer holds Treasury bills that mature beyond early June. He said the decision was made in an effort to protect the company from a "potential breach of the ability of the US government to pay its debts."
While the size of the investment remains unclear, Bloomberg noted that Circle's main rival, Tether Holdings Ltd, increased its holdings of US Treasury bills with a residual average maturity of less than 90 days to $53 billion.
The US may default on June 1 if the country doesn't change its debt ceiling, Treasury Secretary, Janet Yellen, warned earlier in March. She stressed the country might run out of money should Congress decline to raise the debt limit.
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