Circle, a global financial technology firm, has announced that it has almost cleared the backlog in its USDC minting and redemption operations. The stablecoin issuer said that the backlog, which had been caused by a surge in demand for the USD-backed token, had been a major challenge in recent weeks. However, Circle has now managed to ramp up its operations and has reduced the time required to mint and redeem USDC. This move is expected to allay concerns among traders and investors who had raised questions about the stablecoin’s liquidity and reliability during a turbulent period in the crypto markets.
Circle’s exposure to Silicon Valley Bank’s bankruptcy caused panic among USDC stablecoin investors, as it held over $3 billion in reserves. The stablecoin lost its peg to the US dollar, dropping to a record low of $0.87. However, Circle has made progress in clearing minting and redemption requests for USDC. In an update, Circle reported completing almost all requests, with $3.8 billion redeemed and almost $800 million minted. It acknowledged the support and patience of its customers and deepened its partnership with BNY Mellon and Cross River Bank to circumvent the situation. USDC is still trading at a 1:1 parity to the US dollar, remaining the fifth-largest cryptocurrency with a $39.5 billion market cap.