This is the situation with stablecoin providers Circle and Tether

USDC issuer Circle is minimizing default risk and adjusting stablecoin reserves. According to Circle CEO Jeremy Allaire, the company no longer holds government bonds maturing after early June.

The reason is the financial situation in the US. "We don't want to take a risk if the U.S. government cannot pay its debt," Allaire told Politico. Meanwhile, competitor Tether (USDT) is posting an all-time high in the collateral of its own stablecoin. According to an audit report, Tether has $2.44 billion in excess reserves from its circulating tokens.

The company also reported a quarterly profit of $1.48 billion, more than double the previous quarter. According to the related report, Tether has total consolidated assets of more than $81.8 billion. "Looking ahead to the second quarter, we have an extremely positive outlook and remain committed to transparency," said Tether CTO Paolo Ardoino.

USDC lost its peg to the dollar price in mid-March. In the course of the stablecoin's loss of confidence, the market capitalization of its rival currency, USDT, increased significantly.