USDC Coin [USDC] was the most troubled stablecoin when its Silicon Valley Bank (SVB) holdings failed. Despite the challenges that USDC has faced, Circle, the stablecoin’s issuer, has continued to capitalize on its growth.
Circle has redeemed $1.1 billion in USDC in the last week, lowering its circulation by around $500 million. Despite this, the stablecoin had a high circulation of $30.5 billion and substantial reserves of $30.7 billion at the time of publication, including $5.2 billion in cash and $25.5 billion in short-term US Treasury bonds.
USDC’s substantial reserves, which include a large amount in short-term US Treasury bonds, may help reassure consumers that their holdings are backed by dependable and safe assets. Despite demonstrating reserves, USDC’s market worth continued to fall. At the time of publication, USDT was eroding the former’s market share.
New regulations, however, may soon improve the situation for USDC and other stablecoins. Circle Dante Disparte, Chief Strategy Officer and Head of Global Policy, recently testified at a hearing on “Understanding Stablecoins’ Role in Payments and the Need for Legislation,” hosted by the House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Inclusion.
Mr. Disparte emphasized that payment stablecoins like as USDC can transfer a dollar-denominated form of electronic currency, which is a crucial innovation that can benefit both the US economy and national security.
If national regulatory frameworks are in place, this invention has the potential to transform how individuals transmit, spend, save, and safeguard their money in digital form on any internet-connected device. He also said that Congress must pass complete payment stablecoin legislation in order for this to become a reality.
If the US government acts quickly and offers more clarification on the stablecoin area, the market may improve. However, as of press time, interest in USDC had continued to fall. New addresses lost interest in the stablecoin as well. This was shown by the stablecoin’s decreased network expansion over the previous month.