Circle Internet Financial has strengthened its partnership with BlackRock to manage the USDC reserve more effectively, emphasizing trust and transparency. This collaboration involves investing in the Circle Reserve Fund, a Rule 2a-7 government money market fund managed by BlackRock Advisors, LLC, which is composed of cash and short-duration U.S. Treasuries. The fund, custodied at the Bank of New York Mellon, adheres to the Investment Company Act of 1940, ensuring independent oversight and daily reporting of portfolio holdings. Circle's strategy aims to minimize various risks and guarantees that USDC holders can redeem their funds 1:1 for U.S. dollars at any time. The transition to the new reserve management structure began in November 2022 and is expected to complete by the end of Q1 2023.