Circle, the issuer behind USD Coin (UDSC), reportedly disclosed details regarding its commencement to make investments in part of its funds in Circle Reserve Fund. 

Specifically, the funds were reportedly formed initially via an alliance with the global top-tier asset manager, BlackRock. The initiative was reportedly included in the scope of Circle’s attempt at bringing down risks to the minimum, as well as making sure its holders has the redeemability of their coins.

The Circle Reserve Fund reportedly operates as a registered Rule 2a-7 government money market fund in the management of BlackRock, with a portfolio made up of cash and short-dated U.S. Treasurys.

The fund is rolled out exclusively to Circle, with the proceeds will be utilized by the firm partially to purchase new Treasury holdings and store it in the Reserve Fund under the custody of the Bank of New York Mellon. 

The process has reportedly commenced on Nov. 3 and is expected to end by the end of the first quarter of the following year.

The Circle Reserve Fund reportedly stays compliant with the Investment Company Act of 1940, including being subject to an independent board, and will report portfolio holdings on a daily basis.

USDC has yet to be widely recognized as a preferred stablecoin throughout the American Border. Per the recent statement by Coinbase crypto exchange, at the moment, there is three times more USDC bought with U.S. dollars in comparison to other currencies. 

Nonetheless, The U.S. dollar-pegged cryptocurrency still stands at the second spot in the list of top major stablecoin by market capitalization under Tether. 

In September, Circle reportedly revealed the specifics related to its decision to introduce its stablecoin throughout five more networks including Polkadot, Optimism, Near, Arbitrum and Cosmos.