The supply of USDC stablecoin on Ethereum, issuers by Circle Inc. has seen a significant decrease due to its being pegged to the collapsed U.S. lender Silicon Valley Bank, after investor redemptions. Since the start of the year, the amount of USDC in circulation has dropped 11 billion and now stands just under 31 billion. Other stablecoin supplies on Ethereum have also lowered, such as Binance USD and Gemini dollar.

The decreasing supplies of USDC, Binance USD, and Gemini Dollar come alongside several issues related to stablecoin issuers. Actions taken by the U.S. Commodities Futures Trading Commission against Binance, a Financial Times report claiming the exchange intentionally obfuscated its links to China, and the cancellation of Binance's Australian Derivatives license by the country's regulator has caused decreased demand for its namesake stablecoin. Also, Gemini loaned $100 million to their own firm after failing to raise outside funds, and had a "limited number" of customers' emails and parts of their phone numbers leaked.

These events have ultimately resulted in a greater demand for tether, the foremost dollar-pegged blockchain, which resulted in an increase of 10% of its total Ethereum stablecoin supply from 32.3 billion to 35.3 billion. Tether issued an attestation report in February, attesting that its assets exceeded its liabilities and reported a net profit of $700 million for the fourth quarter of 2022.



Other News from Today