Recently, Circle destroyed 314,167,155.05 USDC from its circulation.

In an effort to maintain the stability of the USDC stablecoin, Circle has just burned 314,167,155.05 USDC ($311,419,134) through their innovative redemptions program. By enabling holders of USDC to convert their tokens into US dollars at a 1:1 ratio through this service, the stability and consistency of the USDC value is ensured.

By burning almost $311 million in USDC, Circle is proactively reducing the number of USDC tokens in circulation. The stablecoin will become more stable as a result of this action, which is essential for its widespread acceptance as a reliable medium of exchange.

The Circle redemptions program is an essential tool for ensuring the long-term success of USDC. By giving USDC holders a straightforward and reliable redemption option, Circle is guaranteeing that USDC is a credible and widely acknowledged stablecoin. With this most recent round of redemptions, Circle is demonstrating its commitment to the integrity of this significant coin.

#Circle generated $407.8 million USDC this morning. The most recent minting, These, brings the whole balance to $463.8 million. Due to its disclosure that it has a $3.3 billion exposure to Silicon Valley Bank, USDC was the stablecoin that suffered the most from the bank's bankruptcy last week. This amount, which is much higher than the projected $1 billion, has given the USDC flying fuel. A low of $0.93 was once reached by USDC, the lowest point in its history. Circle recently expressed its satisfaction with the US government's and financial authorities' critical actions to reduce the risks associated with specific components of the banking system.

Deposits to #SVB are 100% accepted. The remaining SVB money will be sent to BNY Mellon, and the whole USDC reserve remains safe. When the banks reopen on Monday, #USDC liquidity will restart. Thanks to these encouraging signs, the bitcoin market is now once again active, and green books are overflowing. Stablecoin USDC has reclaimed its peg levels following a weekend of favorable market movements.

Circle, the issuer of the popular stablecoin USDC, has provided details on the structure and management of the USDC reserve. According to Circle’s official blog post, the reserve is fully transparent and has third-party assurances that it has sufficient assets to cover its liabilities. The USDC reserve consists of about 80% short-term U.S. Treasuries and about 20% cash deposited in the U.S. banking system.

The short-term U.S. Treasuries in the reserve are considered the most liquid assets in the world and are held in an SEC-regulated, wholly-owned, government money fund structure. They are not subject to lock-ups or redemption gates, and there is daily independent, third-party reporting on this portfolio, down to each individual security.

The cash portion of the USDC reserve is held in segregated accounts for the benefit of USDC holders and is used to satisfy the immediate liquidity needs of customers. Circle has taken steps to reduce risk from the banking system by holding substantially all of the cash portion of the reserve at one of the world’s 30 global systemically important banks, also known as a GSIB.

Circle has always aspired to hold the cash portion of the USDC reserve directly with the Federal Reserve to fulfill its vision of USDC as true tokenized cash. However, stablecoin legislation is needed for this to happen. Circle has been at the forefront of calls for federal regulation of the digital asset industry since its founding in 2013 and is optimistic that Congress will act.

In the unlikely event of a Circle bankruptcy, the USDC reserve would remain segregated for USDC holders and would not be part of the bankruptcy estate. Circle stands behind USDC and its obligations to USDC holders, with all its corporate resources, including current corporate cash in excess of $800 million and external capital if necessary.

USDC is a true bearer asset that is always redeemable 1:1 for the U.S. dollar. It is capable of self-custody and transferable to anyone, anywhere, at the high speed and low cost of the internet. USDC has the potential to transform financial services by lowering costs and increasing utility for billions of users.

The transparency and management of the USDC reserve provide confidence to USDC holders and demonstrate the industry’s commitment to safe and secure stablecoins. As the digital asset industry continues to grow, regulatory clarity and stablecoin legislation will be essential to ensure the safe and seamless flow of money between blockchain-based finance and fiat banking.

#USDC #Circle #crypto2023 #BTC #azcoinnews

This article was republished from azcoinnews.com

The recent collapse of Silicon Valley Bank (SVB) and Signature Bank has raised concerns about the fairness and sustainability of the current financial system. While the federal government has taken swift action to protect depositors and minimize damage, some have pointed out that taxpayers may ultimately bear the burden of bailing out depositors.

The stability of major stablecoins, including USD Coin, #USD Digital, and DAI, was thrown into question after #Circle announced that SVB had failed to transfer $3.3 billion out of a total $40 billion withdrawal request. The ripple effects of the banks' collapse are far-reaching, with numerous other entities tied to the banks facing potentially irreparable damage.

In response, US President Joe Biden has assured the public that no American taxpayer will bear the brunt of the fallout, and he is committed to holding those responsible for the event accountable. However, some of Biden's Twitter followers remain sceptical, pointing out that everything he does or touches costs the taxpayer.

The Federal Reserve is conducting a thorough investigation into the factors that led to the failure of SVB, including examining how the institution was supervised and regulated before its collapse. SVB was shut down by the California Department of Financial Protection and Innovation on March 10, with no specific reason given for its forced closure. 

However, it is suspected that severe liquidity troubles stemming from major losses on government bond investments and unprecedented cash withdrawals may have led to its collapse.

It is crucial that the government takes swift action to prevent similar financial disasters from occurring in the future. By closely examining the causes of SVB's collapse, necessary reforms can be implemented to ensure the stability and security of the financial system.

Overall, while the federal government has taken proactive steps to minimize damage and protect depositors, concerns remain about the potential cost to taxpayers. It is important to consider alternative solutions that can protect both depositors and taxpayers in the long run.

#coingabbar #SVB #crypto2023

In a recent incident, Dante Disparte, the Chief Strategy Officer of Circle, had his Twitter account hacked, and a fake airdrop message was posted by the hackers.

The tweet posted on March 22nd announced a token reward for longtime USDC users, which has since been deleted. At the time of writing this article, four of the hacker’s tweets have been deleted, leaving only three remaining tweets that comment on events surrounding USDC.

The notifications were posted when Dante Disparte’s Twitter account was hacked.

Jeremy Allaire, the CEO of Circle, confirmed that the chain of tweets promising a money airdrop for USDC holders was not authentic. He stated that Disparte’s account was hacked, and false information was spread.

“Any links leading to the airdrop event are scams. We are investigating the situation and implementing appropriate measures,” the USDC issuer wrote. At that time, the imposter claiming to be Disparte asserted that the USDC owner would receive a reward after the stablecoin lost its peg at the beginning of February.

The attacker claimed that the token reward would be distributed to the community through an airdrop. One tweet in the chain of posts redirected users to a URL that was not on Circle’s domain.

From March 11th to 12th, the USDC stablecoin lost its peg at a 1:1 exchange rate with the USD, reaching a record low of $0.87 at times. It was only on Monday, March 13th, when banks resumed operations, that USDC returned to its peg.

Shortly after, fake Circle accounts began to appear on social media, promising to compensate users for their losses. Despite USDC’s return to $1, many people sold their USDC at a loss during the market’s panic. An estimated $10 billion was lost.

This event highlights the importance of security measures and serves as a reminder to be vigilant while online. The incident also underscores the risks of putting one’s trust in cryptocurrencies and stablecoins. While blockchain technology is known for its security, hacks and scams remain a significant issue in the industry. It is crucial to remain informed and cautious when dealing with digital currencies.

#USDC #Circle #hack #Disparte #azcoinnews

This article was republished from azcoinnews.com

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