Significant Net Redemption Pressure Observed
Authoritative data reveals a notable contraction in the circulating supply of the USDC stablecoin over the seven days leading to May 14th. During this period, approximately 5.4 billion new tokens were issued. However, this was overshadowed by redemptions totaling around 7.1 billion tokens. The net result was a reduction in circulation of roughly 1.7 billion tokens.
Reserve Composition and Current Standing
At the time of reporting, the total circulating supply of USDC stands at 76.5 billion tokens. These tokens are backed by reserve assets with an aggregate value of approximately $76.7 billion. The breakdown of these reserves, as disclosed, is as follows:
- About $48.3 billion is allocated to overnight reverse repurchase agreements, considered highly liquid and low-risk short-term instruments.
- Roughly $16.1 billion is held in U.S. Treasury securities with maturities of three months or less.
- Approximately $11.9 billion is deposited at designated systemically important financial institutions.
- Around $0.5 billion is held in deposits at other commercial banks.
This reserve structure, heavily weighted towards short-term U.S. Treasuries and high-quality liquid assets, is designed to underpin the stability of the stablecoin.