Circle, the payment technology company behind the USDC digital stablecoin, has revealed in a blog post that it has exchanged USD 6.7 billion in the past week and further minted USD 8.4 billion, making USD 99.3 billion and USD 61.1 billion respectively. are beaten and exchanged. throughout 2021.
Circle prides itself on being transparent
According to information from the blog post (“How to be Stable – USDC Transparency and Trust”), the total USDC reserve at 12 noon (EST) on Friday, May 13, 2022 was $50.6 billion of which 77.1%, representing $39 billion, in US Treasury bills; and 22.9%, representing $11.6 billion, in cash.
USDC, or USD Coin, was launched by Circle in September 2018 as a stablecoin backed by the US dollar to give [institutional] traders the ability to seamlessly convert their fiat dollar into USDC for trading on crypto exchanges by trading, and also convert their USDC back to fiat by redeeming if necessary.
Circle prides itself on being transparent in its audits and reports regarding how its stablecoin USDC is doing and the current market situation around the asset. As a result, the company provides periodic analysis to maintain customer confidence, who are constantly reminded that USDC remains stable.
Circle wants to assure investors of USDC stability amid UST crash
This is especially important given the current crisis situation that has plagued TerraUSD (UST), an algorithmic stablecoin. The asset suddenly crashed to a record low of $0.68 on May 10, causing confusion in the crypto space, and has struggled to recover ever since.
Current UST The situation is particularly problematic for investors who have actively staked it or hold it in crypto exchanges, as it would lead to huge losses if they tried to exchange it for fiat – a dilemma that shouldn’t exist with stablecoins. .
The Terra development team, along with CEO Do Kwon, revealed that steps are being taken to stabilize the asset, including burning 1.4 billion tokens. Regardless, the asset is still falling and trading at $0.16 at the time of writing. Therefore, Circle wants to assure investors of the stability of USDC.
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously, he was a co-founder of Govt. of India supported startup InThinks and is currently editor-in-chief at Coingape and CEO at SquadX, a fintech startup. He has published over 100 articles on cryptocurrency and blockchain and has assisted a number of ICOs in their success. He co-designed an industry training for blockchain development and has conducted many interviews in the past. Follow him on Twitter @sharmasunil8114 and contact him at sunil (at) coingape.com
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This post Circle Mints 8.4 Billion USDC in 7 Days, Why?
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