The popular stablecoin, USD Coin (USDC), saw about $3 billion in outflows in three days this week, publisher Circle said. blog post.
According to the blog post, Circle has redeemed $3.8 billion in USDC and issued $800 million in new USDC tokens between Monday and Wednesday this week, resulting in a net outflow of $3 billion.
A redemption can be easily seen as a reduction in the USDC market cap.
The massive outflow came after reports emerged over the weekend that Circle had $3.3 billion of its $40 billion USDC reserves deposited in the now-collapsed Silicon Valley Bank (SVB).
The news caused USDC to temporarily lose its $1 peg price, but the US government’s assurance that all SVB depositors will be made full later has allowed the stablecoin to regain its peg price. rice field.
Still, this week’s redemption is proof that token holders aren’t convinced USDC is completely out of the woods yet.
In a blog post this week, Circle acknowledged that there was a large redemption backlog that the company had to work through, but said it has now “closed virtually all of the backlog.” .
“The events of last week have impacted USDC’s liquidity operations.
Circle has worked tirelessly to resume services with our alternative banking partners, particularly our payments and USDC redemption services,” the company wrote.
Circle CEO Jeremy Allaire announced on Sunday that one of its new banking partners is New Jersey-based Cross River Bank, saying the new relationship will help get Circle’s automated payments system back on track. I was.