Circle, the stablecoin’s creator, claims to have cleared “substantially all” of the requests for minting and redemption of its USD Coin stablecoin.
Circle reported that it had redeemed $3.8 billion USDC and issued $0.8 billion USDC between the morning of March 13 and the closure of banking activity in the United States on March 15.
Circle experienced a bank run after revealing last week that it held $3.3 billion worth of stablecoin reserves in the now-defunct Silicon Valley Bank, which caused USDC to lose its dollar peg.
According to the statement, the events of the previous week had an effect on USDC’s liquidity operations. Specifically, it was noted that it attempted to re-initiate services with alternative banking partners, including payment and USDC redemption services.
The Company claimed to have used the same banking partner “for international wires to and from 19 countries” on March 15 after going live with a new banking partner on March 14 for U.S. wires. By March 16, it intends “to bring more capabilities” online.
Circle efforts to redeem USDC
On March 13, Cross River Bank was announced as the company’s new commercial banking partner for creating and redeeming USDC. Cross River Bank also provides services to Circle’s rival company Coinbase. Moreover, Circle deepened its connections with its current custodian, the Bank of New York Mellon (BNY Mellon).
The decision follows a difficult time for USDC, during which many investors lost funds in an effort to flee what they regarded to be a rapidly decreasing asset in favor of imagined safety.
In their apparent rush to profit from the crash, one unlucky cryptocurrency user spent nearly $2 million for the opportunity to receive $0.05 of USDT. They may have forgotten to put slippage on their transaction, according to analysis, which allowed a bot to make a sizable profit.