Following the unexpected collapse of Silicon Valley Bank on Friday, there were inquiries regarding the vulnerability of Circle, one of the leading companies in the crypto industry and the issuer of the second-largest stablecoin, USDC. After the firm revealed its $3.3 billion USDC exposure to the collapsed bank, the stablecoin quickly depegged, creating panic this weekend.
However, Circle is now successfully pushing USDC to its dollar peg as it recovers 100% of its reserved fund, and Fed’s $25 billion bailout is bringing back investors’ confidence. According to a report, Circle has begun its redemption by sending 314 million USDC to a null address to stabilize the market.
Circle Prioritizes 1:1 Redeemability Of All USDC In Circulation
On March 13th, the Web 3.0 analytics platform Watchers (0xscope) reported that Circle, the issuer of USDC, had transferred a total of 314.167 million USDC to the Ethereum null address with header 0x00. Typically, this null address is employed for removing tokens from circulation through one-way transactions.
Source: https://coinpedia.org/news/circle-begins-usdc-redemptions-as-it-burns-314-million-usdc-on-chain-data/