Cryptocurrency Investors Withdraw $3 Billion from USDC Coin as Circle Clears Redemption Backlogs and Recovers Funds from SVB

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Cryptocurrency Investors Withdraw $3 Billion from USDC Coin as Circle Clears Redemption Backlogs and Recovers Funds from SVB

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Cryptocurrency Investors Withdraw $3 Billion from USDC Coin as Circle Clears Redemption Backlogs and Recovers Funds from SVB

This week, cryptocurrency investors have withdrawn $3 billion from USDC coin in the Circle. On Wednesday (March 15), Circle said on its blog that it has cleared “all backlogs of minting and redemption requests” for its coins, which is the second most popular cryptocurrency. Between Monday and Wednesday, Circle redeemed $3.8 billion in USDC while mining $800 million.

Following this announcement, Circle attempted to recover $3.3 billion held in Silicon Valley Bank (SVB) when the bank was shut down and taken over by regulators. Due to this news, USDC lost its dollar peg over the weekend, dropping as low as 86 cents.

In the blog post, Circle said, “Last week’s events have affected the liquidity management of USDC.”

“Circle has made relentless efforts to resume services with our alternative banking partners, particularly for payments and USDC redemptions. We want to thank our customers for their patience during this unprecedented time.”

Circle said it has gone live with a new banking partner for international transfers in 19 countries, in addition to wire transfers in the US. The company said it had successfully recovered most of the funds held at SVB.

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