Just-In: Circle Mints 8.4 Billion USDC Within 7 Days, Why?

Sunil Sharma
May 14, 2022 Updated July 18, 2022
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This Stablecoin's Market Cap Skyrockets Amid FUD In Tether, UST

Circle, the payments technology company behind the digital stablecoin USDC, has revealed, in a blog post, that it has redeemed 6.7 billion USDC and further minted 8.4 billion USDC during the past week, with 99.3 billion USDC and 61.1 billion USDC minted and redeemed respectively during all of 2021.

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Circle prides itself at being transparent

Per information from the blog post (“How to be Be Stable — USDC Transparency and Trust”), the total USDC reserve as at noontime (EST) on Friday, 13 May, 2022 was $50.6 billion with 77.1% of it, amounting to $39 billion, being in U.S. Treasury securities; and 22.9%, amounting to $11.6 billion, in cash.

USDC, or USD Coin, was launched by Circle in September, 2018 as a stablecoin backed by the U.S. dollar in order to give [institutional] traders the opportunity to seamlessly convert their fiat dollar to USDC for trades on crypto exchanges by minting, and also convert their USDC back to fiat by redeeming when necessary.

Circle prides itself at being transparent in its audits and reports with regard to how its stablecoin USDC fares and the current market situation surrounding the asset. As a result, the firm provides periodic analyses to retain the trust of customers who are constantly reminded that USDC remains stable.

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Circle seeks to assure investors of the stability of USDC amidst UST crash

This is especially important considering the current crisis situation that has plagued TerraUSD (UST) which is an algorithmic stablecoin. The asset suddenly crashed to a record low of $0.68 on May 10, infusing confusion into the crypto space, and has since then been struggling to recover.

The current UST situation is particularly problematic to investors who have staked the asset or are holding it in crypto exchanges as this would result in massive losses should they attempt to redeem it to fiat – a dilemma that ought not to exist with stablecoins.

The Terra development team alongside CEO Do Kwon have revealed measures being taken to stabilize the asset including burning 1.4 billion tokens among other things. Regardless, the asset still dips, trading at $0.16 as at press time. Considering this, Circle seeks to assure investors of the stability of USDC.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on X at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.