Can Circle [USDC] turn things around with new plan? All you need to know
Circle faced its toughest week so far this year after USD Coin [USDC] lost its dollar peg. It has since recovered, but the stablecoin issuer just released a new update regarding its USDC operations.
According to the update, Circle redeemed 2.9 billion USDC and minted 700 million USDC on 14 March. Those efforts were part of its action plan to aid the peg recovery. More importantly, Circle announced that it was securing new transaction banking partners. The company’s goal is to facilitate round-the-clock transactions that will not be limited by regular banking hours.
<p lang=«en» dir=«ltr» xml:lang=«en»>Circle announced that it had redeemed 2.9 billion USDC and minted 700 million USDC on March 13. That was down from an earlier estimate of $4 billion to $12 billion without a U.S. government's help for banks. Circle says it will continue to add new transaction banking partners… https://t.co/OgxuEPTVVb— Wu Blockchain (@WuBlockchain) March 15, 2023
Circle further revealed that it had limited funds held by its transaction banking partners to support redemption and minting. It also revealed that it held a cash position of its reserve at BNY Mellon. Thus, at press time, it had on-ramps for users looking to move their funds into the crypto segment.
The move by Circle underscored plans to bypass regulators’ efforts to prevent banks from working with crypto companies. It also came just days after multiple banks collapsed, adding more pressure to the fiat system. As a result, more people were losing their trust in the fiat system, and this was a key factor that fueled the rally in the last three days.
The aforementioned factors and the fact that USDC has regained its test have restored some confidence back into the stablecoin. The supply
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