USDC

USDC is a regulated stablecoin issued by Circle, pegged 1:1 to the US dollar. Each USDC in circulation is backed by cash and short-duration US Treasury securities held in regulated US financial institutions. Circle publishes monthly independent attestations from Grant Thornton confirming reserve adequacy.

USDC is the dominant collateral currency across onchain reinsurance protocols. Protocols including Ensuro, onRe, and MembersCap all denominate their capital pools and premium payments in USDC. The reasons are practical: - Stability: No mark-to-market volatility vs the dollar — critical for collateral that must be available to pay claims on demand - Regulatory credibility: Circle is regulated as a money services business in the US and holds an EU Electronic Money Institution (EMI) licence under MiCA - DeFi integration: USDC is accepted in major lending protocols (Aave, Compound), enabling idle capital yield strategies - Institutional familiarity: Major banks, asset managers, and payment companies already hold and transact USDC

For reinsurance regulators, USDC's regulated issuer and audited reserves are key factors in assessing whether it can be recognised as admissible reinsurance collateral — a status that has not yet been formally granted but is under active consideration by the BMA and other supervisors.