Circle is refusing to hold maturing Treasuries because of concerns the United States may default on its debt.
Circle, the issuer of the USDC stablecoin , is refusing to hold Treasury bonds maturing beyond early June amid concerns US politicians will not agree to raise the debt ceiling, putting the government at risk of default. government, CEO Jeremy Allaire said in an interview.
“We don’t want to be exposed to the possibility of defaulting on payments on the debt of the United States government,” Allaire said in the interview .
Democrats and Republicans are in dispute over lifting the government’s $31 trillion borrowing limit, with the Treasury Department taking special measures to meet its obligations.
Although the United States has never defaulted on its debt and a last-minute agreement to save the situation, Circle isn’t the only institution shirking its holdings of maturing Treasury bonds.
Yields on Treasuries maturing on May 23 fell to around 4.2%, while yields on bonds maturing on June 13 rose to nearly 5.5%, according to data from Bloomberg.
