Circle Redeems $3 Billion of USDC and Buys Back $3.8 Billion to Restore Peg

According to Circle, the creator of the USDC stablecoin, users redeemed a total of $3 billion worth of USDC between March 13 and March 15.

In response, Circle bought back $3.8 billion worth of USDC and issued $800 million worth of stablecoins since Monday morning.

The stablecoin experienced a temporary loss of its dollar peg earlier in March, which was caused by Circle’s decision to place 8% of its reserves, or $3.3 billion, in the bankrupt Silicon Valley Bank (SVB).

However, Circle has since removed the risk of asset loss in SVB and opened access to assets for users on March 13. As of March 15, Circle has virtually eliminated all backlogs of USDC issuance and redemption requests.

Despite the recent events, Circle is actively working to re-launch services with alternative banking partners to improve USDC liquidity operations.

As investors withdrew almost $1.74 billion amid the crisis, this represents over 2% of USDC’s working capital.