Circle Clears USDC Backlog After Last Week’s Turmoil

USDC issuer Circle has announced that they have cleared all backlogs of mint and redemption following the stablecoin’s decline over the weekend.

Circle said they redeemed 3.8 billion USDC and mined 0.8 billion USDC since Monday. He has also changed his banking partner after the collapse of Silicon Valley Bank (SVB). However, a community member complained on Twitter that his withdrawal request is still pending.

USDC regains peg but loses to USDT

Following last weekend’s events, Circle piled up USDC withdrawals. But, to avoid any hindrance in its operations, they have changed banking partners.

The stablecoin issuer writes, “On Tuesday, March 14, we went live with a new transactional banking partner in and out of the domestic US wire. Today, we went live with the same partner for international wires to and from 19 countries. We also went live with the existing Transaction Banking partner for International Wires.”

Despite the peg fix, USDC is losing its dominance over its rival stablecoin USDT due to last week’s turmoil. According to a Bloomberg article, the circulating supply of USDC has decreased by 5.9 billion tokens, while USDT has increased its supply by 2.5 billion tokens.

Circle USDC stable market share, screenshot from Bloomberg
Source: Bloomberg

Over the past weekend, USDC lost almost 12% of its peg, trading at 0.88. More than $6 billion in market capitalization was lost after Circle disclosed its exposure to SVB. But soon, it could be redeemable for USD after the Federal Reserve announced on Monday it would meet customers’ deposits in SVBs.

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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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