USDC is recovering! Circle CEO: Liquidity will be restored on Monday, $5.4 billion enters Mellon, and a large amount of trading preparation has been made.

Circle CEO Jeremy Allaire announced that while USDC can be used on-chain around the clock, issuance and redemption are subject to the working hours of the U.S. banking system. Once U.S. banks resume normal business on Monday, the liquidity operations of USDC will return to normal. Circle has also made adequate preparations to deal with potential large transactions.

Circle stated that as a regulated stablecoin, USDC can still be redeemed 1:1 with the U.S. dollar.

Circle Deposits $5.4 Billion at Mellon Bank

Circle appears to have strong confidence in USDC.

It emphasizes that USDC is 100% backed by a combination of cash and U.S. Treasury bonds. Currently, 77% is backed by short-term U.S. Treasury bills totaling $32.4 billion, and the remaining 23% is $9.7 billion in cash held by various institutions, with Silicon Valley Bank being one of them.

U.S. Treasury bills are among the most liquid assets in the world and represent direct debt obligations of the U.S. government.

Circle's reserves are held by Mellon Bank in New York, with liquidity and asset management overseen by BlackRock. The CUSIP number for the Treasury bills can be checked through BlackRock's public information on the CUSIP website.

Circle stated that last week, in order to reduce banking risks, it deposited $5.4 billion with Mellon Bank in New York, one of the largest and most stable financial institutions in the world.

Transfer Initiated, Awaiting Silicon Valley Bank Opening on Monday

With $3.3 billion in cash reserves still stuck at Silicon Valley Bank, Circle has initiated a transfer request to move the funds to other banking partners and expresses confidence in FDIC oversight.

FDIC May Not Fully Compensate, Circle Will Provide Support

According to reports, the FDIC announcement stated that "all depositors will have access to their deposits by Monday morning, March 13." However, the actual extent of funds covered by insurance remains to be seen.

Circle also mentioned that Silicon Valley Bank may not fully refund the deposits immediately, as the FDIC may issue IOU receivership certificates and prepay dividends to depositors. In such a scenario, Circle will support USDC and use company resources to cover shortfalls, involving external capital if necessary.

Other Bank Funds: Customers Bank, Signature Bank

Circle also disclosed that $1 billion in reserves is held at Customers Bank to provide more options for transaction settlements. Additionally, Signature Bank serves as a trading and settlement account for USDC. Regarding Silvergate, which recently closed its doors, USDC funds have already been transferred out, with no exposure.