Circle
CEO
Jeremy
Allaire.
Source:
a
video
screenshot,
YouTube,
IMF
The
popular
stablecoin
USD
Coin
(USDC)
has
seen
outflows
of
around
$3
billion
over
three
days
this
week,
issuer
Circle
said
in
a
blog
post.
According
to
the
blog
post,
Circle
redeemed
$3.8
billion
USDC
and
minted
$0.8
billion
new
USDC
tokens
between
Monday
and
Wednesday
this
week,
making
the
net
outflow
$3
billion.
The
redemptions
could
easily
be
seen
as
a
reduction
in
USDC’s
market
capitalization:
USDC
market
capitalization.
The
$3bn
of
outflows
happened
between
March
13
and
15.
Source:
CoinGecko
The
massive
outflows
came
after
reports
emerged
over
the
weekend
that
Circle
had
$3.3
billion
out
of
$40
billion
in
USDC
reserves
deposited
in
the
now-collapsed
Silicon
Valley
Bank
(SVB).
The
news
caused
USDC
to
temporarily
lose
its
$1
peg
price,
but
guarantees
from
the
US
Government
that
all
SVB
depositors
would
be
made
whole
later
helped
the
stablecoin
regain
its
peg
price.
Still,
the
redemptions
this
week
stand
as
proof
that
token
holders
are
not
convinced
that
USDC
is
fully
out
of
the
woods
yet.
USDC
temporarily
lost
its
peg
last
weekend.
Source:
CoinGecko
In
its
blog
post
this
week,
Circle
admitted
there
was
a
large
backlog
of
redemptions
that
the
company
had
to
work
through,
but
said
it
has
now
“cleared
substantially
all
of
the
backlog.”
“The
events
of
the
past
week
have
impacted
the
liquidity
operations
for
USDC.
Circle
has
worked
tirelessly
to
re-initiate
services
with
alternative
banking
partners,
particularly
payment
and
USDC
redemption
services,”
the
company
wrote.
Circle
CEO
Jeremy
Allaire
on
Sunday
announced
that
one
new
banking
partner
is
New
Jersey-based
Cross
River
Bank,
and
said
this
new
relationship
will
help
Circle
get
its
automated
settlement
system
back
on
track.