Circle Clears Backlog of USDC Minting and Redemption Requests
Stablecoin issuer Circle acknowledged it has cleared “substantially all” of the backlog of minting and redemption requests for USDC.
In a March 15 blog put up, Circle disclosed that it redeemed $3.8 billion USDC and minted $800 million USDC since Monday.
“The events of the previous week enjoy impacted the liquidity operations for USDC. Circle has worked tirelessly to re-provoke services and products with different banking partners, severely payment and USDC redemption services and products,” acknowledged Circle.
USDC temporarily depegged from the U.S. greenback over the weekend after Circle disclosed it had $3.3 billion price of its reserves held on the now-collapsed Silicon Valley Bank (SVB).
Although many of the chaos across the match had been addressed by Sunday evening, when regulators announced they’d glean all SVB depositors entire, Circle became as soon as dealt one other blow after they announced the shutdown of one amongst its predominant banking partners Signature Bank.
Circle had beforehand dilapidated Signature’s digital asset payment network SigNet to direction of USDC minting and redemptions. With the chance no longer readily accessible, Circle CEO Jeremy Allaire acknowledged the agency would be relying on BNY Mellon for these settlements. In an replace rapidly after, Allaire revealed that Circle had fashioned a brand new partnership with Imperfect River Bank to permit automatic settlements.
In Wednesday’s announcement, Circle acknowledged it had signed on a brand new transaction banking partner for home wires in the U.S., with out naming the agency in query. Furthermore, that identical partner will provide world wires between 19 rather hundreds of countries, Circle acknowledged.
“We also went survive the present time with an existing transaction banking partner for world wires. We request to elevate more capabilities relieve on line the following day,” added Circle.
Some market members issued a nod of acclaim for Circle’s swift response in handling the high volume of redemptions, announcing that USDC had successfully passed a stress take a look at.
Source credit : unchainedcrypto.com