• Circle’s USDC Treasury burns $150M in USDC tokens on the Ethereum blockchain.

  • Circle burns USDC tokens to redeem US dollars for businesses.

  • This latest large-scale burn follows a $61.3M USDC burn earlier in the week, with June redemptions surpassing $371M.

Circle, the issuer of USD Coin (USDC), has burned 150 million USDC tokens, equivalent to approximately $150 million.

Whale Alert noticed the transaction occurred on the Ethereum blockchain, where Circle sent $150 million in USDC to a null, inaccessible address earlier in the day.

🔥 🔥 🔥 🔥 🔥 🔥 🔥 150,000,000 #USDC (150,014,443 USD) burned at USDC Treasuryhttps://t.co/QvRzgYP3PJ

— Whale Alert (@whale_alert) June 25, 2024

The transaction has sparked curiosity among community members, who are speculating about the reasons behind destroying $150 million worth of stablecoins. However, this is not the first such instance. On Monday, Circle also incinerated over $61.3 million worth of USDC tokens.

Furthermore, blockchain records reveal that the null address used by Circle to destroy USDC tokens regularly receives small-value inbound transfers, with some transactions occurring as recently as minutes ago.

As explained on Circle’s official website, when a business deposits USD into its Circle Account, the company issues an equivalent amount of USDC to the business. This process, known as minting, increases the circulating supply of USDC.

Conversely, when a business wants to exchange its USDC for US dollars, it deposits USDC into its Circle Mint account and requests to receive US dollars. This process, known as burning, removes USDC from circulation.

In essence, a business entity has just redeemed $150 million worth of stablecoins from Circle, as reflected in the latest transaction. So far in June, Whale Alert has tracked large-value USDC redemptions worth over $371 million this month.

Meanwhile, by the end of May, Circle had burned over $1.061 billion in USDC tokens. On March 14, 2023, Circle destroyed as much as $2.2 billion USDC tokens in one day.

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