Circle has begun transferring some of its USDC reserves to a fund established by BlackRock and registered with the SEC

According to CoinDesk, Circle has begun to transfer part of its USDC reserve funds to the "Circle Reserve Fund", a fund established by BlackRock and registered with the U.S. Securities and Exchange Commission (SEC). The transfer is expected to be completed by March next year. Circle Chief Financial Officer Jeremy Fox-Geen said that all short-term Treasury bonds will be transferred to the fund in stages, but cash reserves (about 20% of the total) will still be held by partner banks.

BlackRock plans to add the fund to the Federal Reserve's reverse repo program, and Jeremy Fox-Geen expressed hope that the reserves would eventually remain at the Fed.