Circle Announces Automated USDC Minting and Redemption Via New Banking Partners

Circle, a leading provider of stablecoins, announced that the USDC (USD Coin) stablecoin will resume operations on Monday, March 13, 2023.

The announcement came in the wake of a joint announcement by U.S. Treasury Secretary Janet Yellen and U.S. prudential regulators that all depositors with Silicon Valley Bank and Signature Bank, which was closed by regulators on Friday, March 10, will be made whole. The USDC reserve deposit held at Silicon Valley Bank, which accounts for 8% of the USDC total reserve, will be fully available when U.S. banks open on Monday morning.

Circle’s CEO, Jeremy Allaire, emphasized the importance of trust, safety, and 1:1 redeemability of all USDC in circulation, even in the face of bank contagion affecting crypto markets. He expressed his appreciation for the steps taken by the U.S. government and financial regulators to mitigate risks extending from the banking system, and highlighted Circle’s commitment to full-reserve digital currency banking.

In addition to the resumption of USDC operations, Circle also announced automated USDC minting and redemption for customers via new banking partners that will go live this week. The company’s USDC reserve is currently collateralized 77% ($32.4B) with short-dated U.S. Treasury Bills, the most liquid assets in the world and direct obligations of the U.S. government. The cash portion of the USDC reserve, 23% ($9.7B), is now held primarily at BNY Mellon.

The announcement by Circle underscores the importance of transparency and trust in the stablecoin market, particularly in light of recent events that have highlighted the risks associated with fractional reserve banking. With its commitment to full-reserve digital currency banking and its transparent approach to the USDC reserve, Circle is well positioned to continue playing a leading role in the stablecoin market.

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