Coinbase backs off promise that each USD Coin is backed by $1 in a bank account

Coinbase Global's (NASDAQ:COIN) website no longer promises customers that each USD Coin (USDC-US) they have in a Coinbase account is backed by a U.S. dollar in a bank account, Bloomberg reports, citing the company's website and other disclosures. USD Coin is marketed as a stablecoin, meaning it has a fixed price and can be redeemed for fiat currency, unlike volatile cryptocurrencies like bitcoin. The claim that it was backed by actual dollars helped USD Coin climb to be the world's second-largest stablecoin with $28B in assets. Coinbase (COIN) offers USDC in partnership with Circle Internet Financial, which last month disclosed USD Coin's assets for the first time. It turns out that assets held to back the stablecoin include cash & cash equivalents (61%), commercial paper (9%), corporate bonds (5%), U.S. Treasurys (12%), and Yankee certificates of deposit (13%). The corporate bonds and commercial paper could fall in value and aren't as