USDC Withdrawals Reach Over $900 Million in 24 Hours; Exchanges See Total of $30 Billion Worth of USDC Pulled Out

In a recent report from CoinDesk, it was revealed that there has been a significant outflow of the stablecoin USDC from centralized exchanges in the past 24 hours. According to the article, wallets holding USDC have withdrawn a total of $68 million from exchanges. Funds and market makers such as Genesis Trading, Wintermute, and Jump Trading have also withdrawn around $79 million worth of USDC.

Overall, USDC withdrawals from centralized exchanges in the past 24 hours amounted to approximately $920 million. Over the past seven days, a total of $30 billion worth of USDC has been withdrawn from exchanges.

Charles Storry, from the cryptocurrency index platform Phuture, shared in a Telegram message with CoinDesk that “people are preparing for the worst-case scenario” and “moving towards safer assets.”

The sudden surge of USDC withdrawals from exchanges comes after it was reported that some of the cash reserves for USDC held by Circle, the issuer of USDC, were deposited with SVB Bank, which was closed down by US financial regulators on March 10.

CoinDesk quoted Circle’s January reserve report, which stated that approximately $9.88 billion worth of USDC’s cash reserve was deposited in several banks. The banks where Circle stored its USDC reserves as of January 17 included Bank of New York Mellon, Citizens Trust Bank, Custodial Bank, New York Community Bank, Signature Bank, Silicon Valley Bank (SVB), and Silvergate Bank. Circle also deposited some of its USDC reserve with the BlackRock Fund.

CoinDesk also reported that Circle has severed ties with Silvergate Bank, which announced voluntary liquidation earlier this month. However, Circle did not respond to CoinDesk’s inquiries regarding its exposure to SVB and Signature Bank.

The sudden movement of USDC from centralized exchanges highlights the importance of decentralized finance (DeFi) as a more secure and stable alternative to centralized exchanges. With the current regulatory uncertainty surrounding the cryptocurrency industry, investors and traders are increasingly turning towards DeFi as a safer option for their assets.

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