Circle Claims It Has Cleared All Backlog For Redemption And Minting Of USDC
The last week was full of turmoil and tension in the entire cryptocurrency market. Investors were worried about the future of cryptocurrencies due to the concerning developments taking place in the stablecoin market.
The stablecoin market was having the worst time due to the de-pegging of the USD Coin (USDC). With the token losing its dollar peg, the investors were concerned about what would happen with the asset going forward.
They were not sure how things would work out if the second-largest stablecoin in the crypto market ended up getting derailed.
Circle Lost no Composure
It was surprising to see that while the entire industry was in a state of panic and fear, Circle never lost its composure. Throughout the past week, Circle continued handling the matter like nothing had happened.
Although the trading value of USDC fell to 87 cents from a complete 100 cents, Circle, the company behind USDC’s issuance was not worried.
It provides assurances to the entire stablecoin community that although they were exposed to one of the banking firms, they were not worried at all.
They had enough resources to ensure that they would be able to cover the $3.3 billion shortfall to make things right for USDC.
According to the officials at Circle, they saw a great number of redemption and minting requests for the USD Coin.
The teams have confirmed that as of now, they have cleared the backlog that had piled up for redemption and minting.
Requests Catered by Circle
Circle has just issued a statement where they have confirmed details about the clearance of the backlog. They have confirmed that they have approved redemption requests for $3.8 billion worth of USD Coins.
In the same period, they have processed $800 million worth of minting requests for the stablecoin.
More Developments Involving Circle
The company headquartered in Boston has also gone for a new banking partner. The company had previously partnered with the Silicon Valley Bank (SVB).
With the demise of the SVB, it was just a matter of time before the company looked for another banking firm. The company was eager to find a banking partner that would lead it to facilitate users based in the United States.
Using the particular banking partner’s platform, the US locals would be able to carry out wire transfers, whether into the bank or outside of the bank.
The company announced on March 14 that it had found a new banking partner and would let its users perform wire transfers without facing any interruptions.
Access to International Wires
Apart from announcing the resumption of wire transfers for the US locals, the company also enabled wire transfers for international users.
The company announced on March 15 that it has enabled the wire transfers facility for international users in more than 19 different countries.
The company has been aiming to bring back more utilities for the users they had to stop with the ongoing market downtrends.
They have confirmed that they will be bringing the capabilities back to the users by the end of the ongoing week.
Company to Ensure Safety of Liquidity
Although the company has handled the situation well, it is going to work tirelessly to ensure that the liquidity situation is resolved for good.
Their goal is to ensure that they continue partnering with more banking firms to increase the safety of USDC’s liquidity.
According to the Circle officials, they do not want to see USDC facing the same situation as they did in the past week. Their goal would be to have more support and backup to make sure their platform remains intact and safe.
As of now, Cross River Bank is the major banking partner of the Circle. They will continue partnering with more banks in the due course to increase their liquidity options.
One of the major partners, Circle already has from the commercial banking sector is the Bank of New York Mellon.
David Anderson is a writer and researcher for Copy Trading Critic. David provides comprehensive news articles from the online trading world. He also writes reviews and analysis of copy trading platforms and strategies.