• Circle has cleared „substantially all“ of the redemption and minting requests for its stablecoin, USD Coin (USDC).
• Last week, Circle was hit with a bank run after disclosing it had $3.3 billion worth of stablecoin reserves in the now-collapsed Silicon Valley Bank which resulted in USDC losing its dollar peg.
• Circle has gone live with a new banking partner for U.S. wires on March 14 and used the same partner „for international wires to and from 19 countries“ on March 15.
Circle Clears ‚Substantially All‘ Minting and Redemption Backlog for USDC
Stablecoin issuer Circle says it has cleared „substantially all“ of the redemption and minting requests for its stablecoin, USD Coin (USDC). Between the morning of March 13 to the close of banking business in the United States on March 15, it had redeemed $3.8 billion USDC and minted $0.8 billion USDC.
Backlog Caused by Bank Run
Last week, Circle was hit with a bank run after disclosing it had $3.3 billion worth of stablecoin reserves in the now-collapsed Silicon Valley Bank which resulted in USDC losing its dollar peg.
New Banking Partner
Circle has gone live with a new banking partner for U.S. wires on March 14 and used the same partner „for international wires to and from 19 countries“ on March 15 It expects „to bring more capabilities“ online by March 16. Its new commercial banking partner is Cross River Bank, which also services peer firm Coinbase’s operations producing and redeeming USDC on Marc
Impact on Liquidity Operations
The events of last week have impacted liquidity operations for USDC significantly according to Circle’s update as they worked to re-initiate services with alternative banking partners; particularly payment and USDV redemption services..
Conclusion
In conclusion, Circle has made progress towards clearing their backlogs but there is still more work to be done as they seek additional capabilities online by March 16th while continuing to offer payment and USDV redemption services through their new partners Cross River Bank