popular stablecoin usd coin (usdc) Issuer Circle said it saw outflows of nearly $3 billion in three days this week blog post on Thursday.
According to the blog post, Circle redeemed $3.8 billion USDC and created $0.8 billion new USDC tokens between Monday and Wednesday this week, bringing the net outflow to $3 billion.
The redemption can easily be seen as a decrease in the market capitalization of USDC:
The massive outflow followed reports over the weekend that Circle had $3.3 billion of its $40 billion in USDC reserves. Deposits at the now-defunct Silicon Valley Bank (SVB).
The news caused USDC to temporarily lose its $1 peg value, but US government guarantee All SVB depositors will be reimbursed afterwards, helping the stablecoin to regain its pegged value.
Still, this week’s redemption is proof that token holders aren’t sure USDC is completely out of the woods just yet.
In its blog post this week, Circle acknowledged that there was a large backlog of redemptions that the company had to work through, but said that it has now “cleared substantially all of that backlog.”
“The events of the past week have impacted USDC liquidity operations. Circle has worked tirelessly to resume services with alternative banking partners, specifically payments and USDC redemption services,” the company wrote.
Circle CEO Jeremy Allaire announced on Sunday that a new banking partner is New Jersey-based Cross River Bank, adding that this new relationship will help Circle get its automated settlement system back on track.