USA₮ circulation reaches $156.5M as reserve backing increases
Anchorage Digital Bank reported $157 million in reserve assets at the end of May, with most funds held in reverse repurchase agreements backed by US Treasury securities.
Anchorage Digital Bank said circulation of USA₮ rose 11% in May, extending the rapid expansion of Tether’s regulated US stablecoin.
The bank reported 156,516,514 redeemable USA₮ tokens outstanding as of May 31, up from 140,850,950 at the end of April. Reserve assets increased by $15.9 million over the same period to $157 million.
The increase left USA₮ with a reserve surplus of $516,492, compared with $327,450 a month earlier. That amounts to reserve coverage of about 100.3%, with more than $1 in assets available for each redeemable token.
Most of the reserves were held in reverse repurchase agreements collateralized by US Treasury securities. Those assets totaled $141.4 million, while a further $15.6 million was held in cash at commercial banks.
USA₮ circulation has now increased more than sevenfold in two months, from 22.1 million tokens at the end of March. The supply rose to 140.9 million in April before adding another 15.7 million tokens during May.