Circle Internet Financial’s stablecoin USDC has withdrawn more than $1 billion since Friday morning after Silicon Valley Bank (SVB), one of Circle’s banking partners, was shut down by the government.
Based on the information of Nansen Circle burned $1.6 billion worth of USDC after investors redempted their dollars. Circle is now issuing new coins, but it’s still less than the amount burned.
USDC’s market cap is now down to $42.4 billion from $43.5 billion. Reference information from CoinMarketCap The value of USDC coin is now slightly below $1. Causing investors to worry about whether the company’s reserves will decrease or not.
USDC is one of the most active stablecoins after USDT. The value of the token is backed by US government bonds and cash-like assets. More than $11.1 billion in cash has been deposited according to the website. Circle
Investors are now concerned about whether the stablecoin will stabilize after the SVB announced its closure, and SVB is the custodian of 25% of USDC’s cash reserves.
The Circle company is still providing normal service.
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