Following the Ethereum Shanghai upgrade, the crypto space has seen the de-pegging of USDC token in the last few weeks of March 2023. The incident of USDC losing its dollar peg, was a followed incident after Circle had been hit with a bank run after they disclosed that they had $3.3 billion worth of stablecoin reserves in the now-collapsed Silicon Valley Bank.
However, the stable coin issuer has been working towards rectifying the market ever since. Circle has claimed the it has cleared “substantially all” of the redemption and minting requests for the USDC stablecoin, in its March 15 update. The operational update also mentioned that, within the morning of March 13, 2023 to the close of banking business in the United States on March 15, 2023 it had redeemed about $3.8 billion USDC and has minted about $0.8 billion USDC.
Read More: USDC Stablecoin Depeg
Update: As of close of U.S. banking operations Wednesday, March 15, we have cleared substantially all of the backlog of minting and redemption requests for USDC. Get the details: https://t.co/5WEAgPps0E
— Circle (@circle) March 16, 2023
Circle added in its update that the events of the past week had have a deep impact on the liquidity operations for USDC. However, thanking the customers for their patience they added that they will “re-initiate services with alternative banking partners, particularly payment and USDC redemption services.”
Additional Read: Over 2 Mn USDC Token are burnt in a day
In its March 14 update, Circle also said that they have gone live with a new banking partner for U.S. wires and have used the same partner for 19 more countries in their March 15 update. The mentioned banking partner is, Cross River Bank, who also services the peer firm of Circle; Coinbase; was said to be the firm’s new commercial banking partner that helped them in producing and redeeming USDC on March 13, 2023.
Circle has also said to have expanded its ties with its existing custodian, the Bank of New York Mellon also known as BNY Mellon.
During the weekend, after the crash, Circle issued a press release where the USDC issuer has confirmed that 100% of the USDC reserves are safe and secure. The company said it will be completing the transfer of the remaining Silicon Valley Bank (SVB) cash to BNY Mellon, and the liquidity operations for USDC will be resuming at banking open from Monday; March 13, 2023.