Auditors working for Circumvolve have disclosed the reserves bankroll the firm'southward USD Money (USDC) stablecoin, while Mad Money'southward Jim Cramer has questioned Tether's lack of transparency with its Tether (USDT) reserves.

Multi-national revenue enhancement informational firm Grant Horton conducted the audit, and a reserve testament study was published on Tuesday, which showed that 61% of USDC's reserves were held in greenbacks and cash equivalents equating to $thirteen.4 billion as of May 28.

Circle'south total commercial newspaper accounts for 9% of its reserves, and the figures provide a stark contrast to Tether's reserves, in which undisclosed commercial paper deemed for 49.5% of its total reserves — something that Cramer has been "sounding the alarm" about recently.

The Circle report defines greenbacks equally deposits at banks and Government Obligation Coin Market Funds, while greenbacks equivalents are defined as securities with an original maturity less than or equal to 90 days.

On May 28, at that place was 22,176,182,251 total USDC in circulation, with the total fair value of Circumvolve's U.Southward. dollar-denominated assets held in segregated accounts fully backing the supply of USDC co-ordinate to the report.

Circle noted that information technology voluntarily disclosed its reserves as part of its transparency goals, with the business firm revealing plans to go public via a special purpose acquisition company (SPAC) earlier this month.

USDC Reserve Breakdown: Circle

"Yankee CDs" and "US Treasuries" represented the next biggest share of assets backing the reserves at thirteen% and 12%, respectively, with a combined total value of $five.half dozen billion.

Yankee CDs are defined every bit "USD denominated Certificates of Deposit issued in the United states of america by co-operative(es) of Foreign Banking Organizations," with a maximum maturity of 13 months, while the United states treasuries take a maximum maturity of 3 years.

The total commercial paper allocations correspond 9%, worth $2 billion; corporate bonds account for 5%, worth $i.1 billion; and municipal bonds and U.S. agencies etch 0.ii%, worth $100 million.

Circle'due south USDC reserve breakdown was published amid increased scrutiny on the stablecoin sector from the United States government, with U.S. Treasury Secretary Janet Yellen meeting with other financial regulators this week to discuss a regulatory framework for stablecoins.

Circle CEO Jeremy Allaire emphasized in a Tuesday weblog post that the firm is committed to providing transparency of its operations and working within the traditional financial system:

"Core economic activities underpinning USDC are built inside the perimeter of the U.S. financial system, and not outside of information technology."

Jim Cramer thinks Tether is Mad Money

Speaking during a Tuesday interview with TheStreet, Jim Cramer, the host of CNBC's Mad Money, questioned Tether's lack of transparency and asked why the firm hasn't disclosed what the large percentage of commercial paper backing USDT is.

Tether released a brief reserve breakdown on May 13 and did not mention any independent review conducted on behalf of the firm.

Tether'due south reserve breakup showed that every bit of March 31, 3-quarters of its reserves were held in cash, greenbacks equivalents, other curt-term deposits and commercial newspaper. Amidst that category, commercial paper accounted for 65.39%, with cash alone accounting for just 3.87%.

Related: Stablecoins under scrutiny: USDT stands by 'commercial paper' tether

The business firm is nonetheless to reveal what comprises its commercial newspaper holdings, and Cramer has been sounding the alarm bells:

"I am concerned about Tether, and I'1000 not gonna cease sounding the alarm until I know what Tether has. They've got virtually $60 billion in commercial newspaper. Tether, open the kimono, what commercial paper do you own?"

"Why wouldn't they tell us?" he added, as he questioned whether the U.Southward. Securities and Exchange Commission will step in to discover out.

"There's a belief that a lot of the commercial banking company newspaper is Chinese banking company paper — why not put that to rest and tell us information technology isn't?" he said.