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Crypto DeFi

USDC Circulation Rises ~1B in 7 Days; Circle Issues 11.2B, Redeems 10.2B

In the seven days through August 27, Circle issued approximately 11.2 billion USDC and redeemed 10.2 billion, increasing circulation by about 1 billion. Total USDC circulation stands at 73.7 billion, backed by reserves of about $74 billion, including $49.6 billion in overnight reverse repo, $13.2 billion in Treasury bills under 3 months, $10.5 billion in systemically important institution deposits, and $0.7 billion in other bank deposits.

Original source

AI take

The near doubling of issuance activity relative to the net increase underscores heavy churn in USDC's secondary market, likely reflecting institutional treasury operations or arbitrage flows rather than organic demand growth. With reserves heavily weighted toward overnight reverse repo and short-dated T-bills, the stablecoin's liquidity profile remains highly conservative, which may strengthen its credibility among risk-averse holders. The sustained weekly net expansion, albeit modest, signals continued, if not accelerating, adoption in on-chain settlement. Whether this pace persists or was a one-off spike in activity is the key metric to monitor in coming weeks.

Generated by AI for reference only.

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