The news caused USDC to temporarily lose its $1 peg price, but guarantees from the US Government that all SVB depositors would be made whole later helped the stablecoin regain its peg price.
Still, the redemptions this week stand as proof that token holders are not convinced that USDC is fully out of the woods yet.
In its blog post this week, Circle admitted there was a large backlog of redemptions that the company had to work through, but said it has now “cleared substantially all of the backlog.”
“The events of the past week have impacted the liquidity operations for USDC. Circle has worked tirelessly to re-initiate services with alternative banking partners, particularly payment and USDC redemption services,” the company wrote.
Circle CEO Jeremy Allaire on Sunday announced that one new banking partner is New Jersey-based Cross River Bank, and said this new relationship will help Circle get its automated settlement system back on track.
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