As of the 31st of July in 2022, the reserves report that was prepared by Circle Internet Financial LLC (Circle), the company that issues the stablecoin USDC, has been made public. The website of Circle has a forthright transparency declaration that reads as follows: "The stablecoins we issue are created to a higher standard. Because of this, USD Coin (USDC) may always be redeemed for an equal amount of U.S. dollars, and Euro Coin (EUROC) can always be redeemed for an equal amount of euros. Always”.

The report stated that the total USDC reserve assets were valued at $54.6 billion, which is higher than the amount of USDC that is currently in circulation, which is $54.5 billion. The entirety of the reserve assets were made up of US Treasury Securities with a total value of $42.3 billion US dollars and cash deposits of 12.2 billion US dollars. Grant Thornton, a prominent accounting company based all over the world, has published Circle's USDC monthly reserve report for the month of July 2022.

Grant Thornton states the following in their independent attestation dated August 24, 2022: "In our judgment, the Reserve Information in the accompanying USDC Reserve Report as of July 31, 2022 is fairly stated, based on the criteria set out in the USDC Reserve Report, in all relevant ways."

Neutrino USD (USDN), an additional algorithmic stablecoin, has lost its peg against the US Dollar for the fourth time in 2022. This is another example of the difficulties that stablecoins are having to deal with. The Waves token ensures that the USDN's price remains fixed at one dollar. The algorithmic stablecoin known as Terra UST was invalidated in the month of May 2022.

An vulnerability on the Acala Network caused the dollar-pegged stablecoin Acala USD (aUSD) to detach from the dollar around the middle of August 2022. After the implementation of a new burn strategy that was backed by the Acala community, the stablecoin known as aUSD was able to reclaim its dollar peg. This month has seen yet another stablecoin, HUSD, lose its dollar anchor as its value fluctuates independently of the dollar. HUSD has since made a full recovery since the time this article was written.

Attestations and audits are increasingly becoming a standard component of the regular reports that cryptocurrency companies publish. According to the Assurance Consolidated Reserves Report that was published by Tether in June 2022, the Group's consolidated assets were higher than its consolidated liabilities. The cryptocurrency exchange known as Kraken published the results of its second proof of reserves audit in August of 2022. Customers of Kraken's cryptocurrency exchange were given the opportunity to verify the holdings of their crypto assets with the help of an external auditor.

The regulatory agencies that oversee the financial industry are starting to pay more attention to stablecoins. Financial regulators are investigating the potential for stablecoins to enhance existing monetary payment systems while also evaluating a variety of hazards, including those related to the financial system as a whole.

It is expected that the transparency of the asset reserves will continue to be an essential consideration when defining the role of stablecoins within the cryptocurrency and financial markets.