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Grant Thornton LLP has issued an unbiased attestation report on the financial strength of the Boston-based fintech company, Circle Internet Financial, Inc. and its stablecoin, USDC.
According to the report, the crypto finance company currently holds up to $293,351,374 in its custody account. It also stated that the amount of issued and outstanding USDC sums up to a total of 294,184,174 USDC as at the end of April 2019. From the figures, it is safe to infer that the issued and outstanding USDC token do not exceed the balance of the US dollars held in the custody accounts.
Grant Thornton stated in its report that the examination was conducted according to the attestation standards laid down by the American Institute of Certified Public Accountants. The reserve account was carefully examined to ensure it is the same account stated in the report. The firm also made an assessment of risks of material misstatement by assessing the internal control relevant to the preparation of the reserve account information.
In essence, the independent accounting firm’s findings are in tandem with the company’s financial statement. It is important to add that Circle publishes such reports on a regular basis.
Many crypto companies that run stablecoins are facing accusations that they are not really fully backed by the underlying financial asset to which the stablecoin is pegged. Therefore, for the utmost level of transparency between crypto firm, its partners, and the entire pool of consumers, these FinTech companies are charged with the informal responsibility at filling periodical attestation reports on the financial strength of the company in terms of its actual reserves.
Again, to ensure that these attestations are totally free of any form of manipulation, independent accounting firms are hired to conduct research through the financial details of the company and release an unbiased attestation report based on their findings.
Circle is a crypto-based FinTech company which asserts that it is committed to providing innovative solutions to help customers send and receive digital money globally without breaking a sweat. Founded in 2013, the company has broadened its innovative solutions to a number of payment solutions including Circle Trade, Circle Pay, Circle Invest, and Poloniex. Circle Trade allows its users to trade crypto coin over the counter. Circle Pay is focused on expediting the rate of transactions; with Circle Pay, consumers can move money virtually across different borders within seconds. The Circle Invest solution is centered at providing customers with an opportunity to invest, and Poloniex allows consumers to buy and sell on any active crypto exchange.
The US-based Grant Thornton LLP is one of the many members of the world-leading independent audit, tax, and advisory firm. It conducts audits and other financial maneuvers in the crypto world regularly. Just recently it was appointed as liquidator of the now-defunct crypto exchange Cryptopia.