The stablecoin’s creator Circle claims to have approved “substantially all” of the minting and redemption proposals for USD Coin USDC.
In a March 15 operational update, Circle stated that it had issued $0.8 billion USDC and redeemed $3.8 billion USDC between March 13’s morning and March 15’s close of banking activity in the United States.
A bank run occurred last week as a consequence of Circle’s disclosure that it had $3.3 billion worth of stablecoin reserves in the now-defunct Silicon Valley Bank, which caused USDC to lose its peg to the dollar.
The recent events have affected USDC’s liquidity activities, according to Circle’s update. It was also stated that efforts were being made to. “re-initiate services with alternative banking partners, particularly payment and USDC redemption services.”
Circle 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 for U.S. wires on March 14. By March 16, the company plans to “bring more capabilities” online.
On March 13, the company revealed Cross River Bank as its new business banking partner for creating and repurchasing USDC. Cross River Bank also provides services to Circle’s rival company Coinbase. Relations between Circle and its current administrator, the Bank of New York Mellon, have also been strengthened.
The announcement follows a difficult time for USDC during which many investors lost money in a flight for what they believed to be safety from what was at the time a quickly declining asset.
In an apparent attempt to cash in on the crash, one unfortunate cryptocurrency user paid over $2 million to obtain $0.05 of USDT. They may have forgotten to put slippage on their transaction. According to an analysis, which allowed a bot to make a sizable profit.