Coinbase will support digital payments platform Circle to hold USDCs in its cash and short-term U.S. Treasuries starting in September 2021, according to the cryptocurrency trading company.

USDC is the largest stablecoin by market capitalization, with a market cap of about $28 billion, which means each token is backed by $1 in reserves.

Earlier this month, it was reported that Coinbase had dropped its commitment to back each token with dollars from its bank account. In July, Circle disclosed for the first time USDC's assets, which include commercial paper and corporate bonds in addition to cash, equivalents and U.S. Treasuries.

In July, Circle announced that assets held to back the stablecoin included cash and cash equivalents, commercial paper, corporate bonds, USTs and Yankee CDs (Yankee Certificate of Deposit)

Shares of Coinbase rose nearly 3.0% in early trading as bitcoin surpassed $50,000 for the first time in three months.