Coinbase partner to back USD Coin with cash, short-term USTs in September

Cryptocurrency exchange Coinbase (NASDAQ:COIN) and Centre will support digital payments platform Circle to hold USD Coins (USDC-USD) in cash and short duration U.S. Treasurys starting in September 2021, according to Coinbase's Centre. "This is the approach we want," Coinbase President and Chief Operating Officer Emilie Choi said in a tweet thread. USDC (USDC-USD) is the largest stablecoin with ~$28B in market capitalization, which means each coin is backed by $1 in reserves. Earlier this month, Bloomberg had reported that Coinbase had backed off promises to back each USD Coin with a U.S. dollar in a bank account. In July, Circle disclosed USDC's assets, which included commercial paper and corporate bonds in addition to cash, equivalents and U.S. Treasurys, for the first time. Choi made clear in regards to Circle that "changes in the investment portfolio for USDC reserves began in May 2021, and a "more conservative investment profile will return by