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Reserves are managed by Circle Reserve Fund. It is owned by BlackRock Advisors. Institutions and organizations such as BNP Paribas, Barclays, etc. were selected as counterparties for conducting transactions.
At the same time, the share of REPO transactions exceeded 35%. The representative of the company explained that this strategy has been in effect for many months. The use of highly liquid instruments allows for higher protection of stable coin reserves in the event of a default of the US government debt. However, in his opinion, this is unlikely.
Prior to that, the company's SEO noted that the organization had made changes to the structure of ensuring a stable coin. Now they will use short treasury bills more often to minimize the risk.
Recall that the situation began to become critical due to the lack of consensus in Congress regarding the increase in the level of public debt. According to numerous data from the Ministry of Finance, the money may run out from the beginning of June this year.
The regulator eventually demanded that the company withdraw the registration application. Grayscale itself noted that they do not consider Filecoin a security. Therefore, they will respond to the department in a short time and explain the legal background of the position expressed.
The company said that it does not undertake to predict the results. If it fails to convince the agency, it will either find the necessary registration or liquidate the product.
Note that the company has 17 trusts based on cryptocurrencies. Last year, she filed a lawsuit against the agency, as it refused to convert Bitcoin Trust into Bitcoin-ETF.