A press release titled, "ICE and Circle Sign MOU to Explore Product Innovation Based on Circle's USDC and USYC Digital Assets," tells us, "Intercontinental Exchange Inc. (NYSE: ICE), a leading global provider of technology and data, and Circle Internet Group, Inc., a global financial technology company and stablecoin market leader, today announced an agreement whereby ICE plans to explore using Circle's stablecoin USDC, as well as tokenized money market offering US Yield Coin (USYC), to develop new products and solutions for its customers." (Note: Thanks again to those who supported our Bond Fund Symposium in Newport Beach! Attendees and Crane Data subscribers may access the conference binder, Powerpoints and recordings via our "Bond Fund Symposium 2025 Download Center.")
Jeremy Allaire, Co-Founder and CEO of Circle comments, "ICE's reputation and global network across markets offer a unique pathway for Circle to integrate USDC into major new use cases, and we are thrilled for the opportunity to innovate together."
New York Stock Exchange President Lynn Martin, says, "We believe Circle's stablecoins and tokenized digital currencies can play a larger role in capital markets as digital currencies become more trusted by market participants as an acceptable equivalent to the US Dollar. We are excited to explore the potential use cases for USDC and USYC across ICE's markets."
The release explains, "Circle's USDC is a fully reserved stablecoin, otherwise known as a digital dollar, and is designed to maintain price equivalence to the US dollar. According to Circle, as of March 26, 2025, over $60 billion of USDC is in circulation. USDC reserves are backed by highly liquid cash and cash-equivalent assets making USDC redeemable 1:1 for US dollars."
It adds, "The majority of the USDC reserve is invested in the Circle Reserve Fund (USDXX), an SEC-registered 2a-7 government money market fund. Launched in 2018, USDC is now accessible to approximately 600 million end-user wallet products, supporting a range of use cases from crypto capital markets activities to dollar store of value, and payments applications."
Finally, Circle's release states, "Under the MoU, Circle and ICE plan to collaborate to explore applications for using Circle's stablecoins and other product offerings within ICE's derivatives exchanges, clearinghouses, data services, and other markets, to deliver innovation and build new markets and product offerings based on Circle's products."
In other news, ICI's "Month-End Portfolio Holdings" confirms a jump in Repo and a drop in Treasuries last month. Treasury holdings in Taxable money funds remained the largest composition segment last month, they decreased $114.4 billion, or -3.9%, to $2.806 trillion, or 41.0% of holdings. Treasury securities have increased by $394.5 billion, or 16.4%, over the past 12 months. (See our March 12 News, “March Money Fund Portfolio Holdings: Repo Surges, Treasuries Plunge.")
Repurchase Agreements were the second largest composition segment this past month, increasing $185.9 billion, or 7.8%, to $2.571 trillion, or 37.5% of holdings. Repo holdings have increased $341.0 billion, or 15.3%, over the past year. U.S. Government Agency securities were the third largest segment; they decreased $15.0 billion, or -1.8%, to $828.5 billion, or 12.1% of holdings. Agency holdings have increased by $137.6 billion, or 19.9%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place, up $439 million, or 0.1%, to $301.0 billion (4.4% of assets). CDs decreased $47.6 billion, or -13.6%, over one year. Commercial Paper was in fifth place; they increased by $1.8 billion, or 0.6%, to $293.9 billion (4.3% of assets). CP held by money funds rose by $37.5 billion, or 14.6%, over 12 months. Other holdings decreased to $21.6 billion (0.3% of assets), while Notes (including Corporate and Bank) decreased to $33.8 billion (0.5% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 77.440 million, while the Number of Funds was unchanged at 217. Over the past 12 months, the number of accounts rose by 11.500 million and the number of funds decreased by 10. The Average Maturity of Portfolios was 36 days, down 2 days from January. Over the past 12 months, WAMs of Taxable money are down 4 days.
