The Outflows of Stablecoin USDC Exceed $10B
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Since March 10, when regulators closed down a key reserve banking partner of Circle’s USD coin (USDC) stablecoin, crypto investors have been abandoning the token.
USDC has gone down 23% in market capitalization recently, standing at about $33 billion, and many investors have instead turned to Tether, which has reached a 22-month high.
USDC is still the second-most popular stablecoin. To ensure the token’s value, Circle has placed short-term government bonds managed by BlackRock and cash reserves in various US banks, with “substantially all” of the cash now held by BNY Mellon, one of the largest custodian banks in the world. Other stablecoins, such as Binance’s BUSD, have also seen major drops in market share.
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