Coinbase Inc. (NASDAQ:COIN) apologized for falsely advertising USD Coin (CRYPTO: USDC) once again and promised that it will become fully backed by cash and Treasury bills issued by the U.S. Treasury.
What Happened: According to a Twitter thread written by Coinbase's Chief Operating Officer Emilie Choi, "starting September 2021, USDC reserves will be held in cash and short-duration US government treasuries."
"This is the approach we want for USDC reserves," she added.
According to recent reports, Coinbase found itself amid controversy after the exchange walked back on its previous claims about the backing of the coin, admitting that it is not fully backed by United States dollars and later editing its website's description.
Choi explained that USDC has always been fully backed and guaranteed its users to redeem each token for one United States dollar.
Still, Coinbase advertised to its users — whom it sold USDC to — that the token is “backed by a dollar in a bank account."
She admits that the firm's "language could have been clearer here."
What Else: The Coinbase executive noted that when Circle, the firm managing USDC, released a report in May revealing that the treasury backing the tokens has switched to a "more diversified pool of investments," the exchange "should have moved faster to update" its statements.
Read also: Intel Discloses Stake In Major US Crypto Exchange Coinbase
Still, she promises changes are planned, and the USDC treasury will "revert back to a more conservative investment profile by the end of September."
Price Action: Coinbase shares closed $256, lower 0.51%.
USD Coin was trading 0.08%, at $1.
Photo: Courtesy of Coinbase
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