Circle is transferring $8.7 billion USD into repo agreements to protect its reserves from the potential default of the US government.

USDC issuer, Circle, is moving $8.7 billion USD into repo agreements, hoping to safeguard against the risk of default by the US government.

Circle's reserve fund, managed by global investment giant BlackRock, has added money to overnight repo agreements as part of its investment portfolio since May 16, according to the fund's website.

A spokesperson for Circle stated, "While this plan has been in progress for several months, including these highly liquid assets also provides additional protection for the USDC reserve in the event of a US default that is uncertain." Circle's CEO, Jeremy Allaire, has also expressed concerns about the potential default of the US government.