Substantially All’ Minting And Redemption Backlog For USDC
The stablecoin issuer says it has cashed US$3.8 billion and minted US$800 million between March 13th and March 15th.
The Stablecoin Issuers Circle has announced that it has lowered “substantially all” Redemption Backlog For USDC and issuance requests for its USD Coin USDC ticker by $1.00. In a March 15th operational update, the Circle said that from the morning of March 13th to the end of its banking operations in the United States on March 15th, it had cashed $3.8 billion and minted $800 million. Said.
At the close of US banking on Wednesday, March 15th, we liquidated all USDC mints and redemption backlogs.
As of Monday morning, the Circle has cashed his $3.8 billion and minted $800 million.
The events of the past week have affected USDC’s liquidity manipulation. Circle has been working tirelessly to resume services with its alternative banking partners, particularly payments and USDC redemption services. We thank our customers for their patience during these unprecedented times.
On Tuesday, March 14th, we launched a new transactional banking partner for inbound and outbound domestic transfers to the United States.
Today we have him live with the same partner on international cable who travels to and from 19 countries. We also went live today with our existing transaction banking partners for international money transfers. We will be bringing more features back online tomorrow.
@REKT-CAP TWEET REPLYING TO @Circle
Why did the USDC coin and redemption backlog go into therapy? Because we couldn’t find a stablecoin relationship and had to go back to the source of the problem.
Last week, the Circle suffered a bank run, and USDC lost its dollar peg after it was revealed that the now-collapsed Silicon Valley Bank had $3.3 billion worth of stablecoin reserves.
Circle, the parent company of stablecoin USD Coin (USDC), has cleared most of its backlog on minting and redemption requests for the cryptocurrency. The announcement came in a blog post on Wednesday, in which Circle CEO Jeremy Allaire said that the company had processed “substantially all” of the outstanding requests.
According to the post, Circle’s USDC reserves have grown significantly over the past few months, rising from around $5 billion to over $25 billion in the past six weeks alone. The company attributed this growth to a sharp increase in demand for USDC, particularly from institutional investors and businesses using cryptocurrency for treasury management.
However, the rapid growth in demand for USDC caused significant strain on Circle’s processing systems, leading to a backlog of minting and redemption requests. According to Allaire, the company had to implement “manual oversight and management” of its USDC reserves to ensure liquidity and manage the backlog.
While Circle did not disclose the exact size of the backlog, Allaire said the company has now successfully processed “substantially all” of the outstanding requests. He added that the company now has better systems to manage future demand for USDC.
“We have increased our personnel, enhanced the technical infrastructure of our systems, and are now better equipped to respond to needs at scale,” Allaire wrote. “We recognize that some customers were impacted, and we deeply apologize for any inconvenience caused. We are fully committed to continuing to improve and scale our business to meet the needs of our customers and the broader financial ecosystem.”