In a manner not typical of USDC, the stablecoin is late in the release of its attestation documents. The attestation documents are certifications that affirm that it holds an equal amount of fiat according to its market cap. The documents are often published on its transparency website. The recent attestation report was last released in February.
The dollar-backed stablecoin has witnessed meteoric rise in its holdings. The valuation it held as at February was about $9 billion but has risen to $20 billion at the time of this report. USDC is perceived to be the safest stablecoin as it is issued by Centre which is a solid partnership of Coinbase and Circle.
The delay in the release of its attestation documents are beginning to trigger alarms within the crypto community. At the time of this report, nobody from Centre or a member that has knowledge of its internal affairs has released a statement about the issue. Grant Thornton LLP, the top-flight audit firm that produces the attestation documents for USDC hasn’t made a remark too to explain the reason for the hesitance.
The Uncertainty that Beclouds Stablecoins
Aside from the present USDC saga, other stablecoins have also had similar or worse situations. A glaring example is Tether, which happens to be the largest stablecoin according to its market cap. The dollar-backed coin had spent years without providing a valid attestation to verify its holdings.
USDT only until February, released an attestation that was produced by an independent firm, Moore Cayman. The document at the time testified of over $38 billion in real holdings by the company.
However, the first presentation of its holdings didn’t stop Tether from facing a lawsuit by the New York Attorney General. The stablecoin was fined over $18.5 million and was barred from conducting any transactions with any individual or institution within the city.