Circle says it has fulfilled “virtually all” of the redemption and minting requests for its USD Coin $1.00 stablecoin. Circle announced in a March 15 operating update that it has redeemed $3.8 billion USDC and minted $0.8 billion USDC between the morning of March 13 and the closure of banking activity in the United States on March 15.
Circle was faced with a bank run last week after admitting it had $3.3 billion in stablecoin reserves at the now-defunct Silicon Valley Bank, causing USDC to lose its dollar peg.
“The events of the past week have had an impact on USDC’s liquidity operations,” Circle noted in an update. It went on to say that it was working to “re-launch services with alternative banking partners, particularly payment and USDC redemption services.”
Circle said it launched a new banking partner for U.S. wires on March 14 and continued to use the same partner “for international wires to and from 19 countries” on March 15. It anticipates “bringing more capabilities” online by March 16.
On March 13, Circle’s peer firm Coinbase announced Cross River Bank as its first commercial banking partner for issuing and redeeming USDC. Circle also strengthened its relationship with its current custodian, the Bank of New York Mellon (BNY Mellon).
The announcement follows a rocky period for USDC, during which many investors lost money in a flight to presumed safety from what was, at the time, a rapidly decreasing asset.
In their apparent rush to cash out of the crash, one unhappy crypto user spent over $2 million for $0.05 of USDT. An investigation indicated that they may have forgotten to put slippage on their trade, allowing a bot to benefit significantly.