Crypto investors withdraw $3 billion from stablecoin

Crypto investors have withdrawn about $3 billion from the stablecoin USDC in three days as investors seek to redeem their holdings following the collapse of Silicon Valley Bank.

The stablecoin fell to $0.89 but bounced back to the $1 mark on Monday. Circle has announced that it will enable automatic USDC redemptions by establishing a new banking relationship with Cross River Bank.

Stablecoins are cryptos designed to maintain a stable exchange rate of traditional currencies. USDC is the second largest stablecoin with a market cap of $37.62 billion.

Over three days, Circle processed $3.82 billion in USDC redemptions and created $0.82 billion more tokens, automatically meaning that investors earned about $3 billion over the three days.

The active outflows come after US banking regulators issued a new order that crypto-related bank deposits could be subject to liquidity risk.

Over the past week, investors have withdrawn $6 billion from the coin.

Extending the deal at any time would harm the interests of former Voyager customers who want their funds back.

A New York district court has denied a US government order to halt Binance.US’ acquisition of bankrupt brokerage Voyager. Any kind of time extension of the transaction would be detrimental to the interests of Voyager’s former clients.

The decree on not accepting the government’s petition was passed on March 15. The court denied the government’s request to stay the confirmation order, that is, to add additional days to implementing the bankruptcy plan.

Court approval for Binance.US – Voyager acquisition was granted on March 7. A judge has allowed the trading platform to shut down the sale of Binance. The US. It rejected the Securities Exchange Commission’s counter-report listing that transferring funds from Voyager to Binance.US violated US securities laws.

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