Circle Internet Financial Ltd. adjusted the mix of reserves backing its USD Coin to favor short-dated US Treasuries so it can avoid getting caught up in a potential US debt default, Chief Executive Officer Jeremy Allaire said in a interview with Politico.
Allaire said the company, issuer of the No. 2 stablecoin by circulation, no longer holds Treasuries maturing beyond early June because it doesn’t want to carry exposure “through a potential breach of the ability of the US government to pay its debts,” he said in the interview.
