Circle redeems roughly $11.7 billion in USDC as supply slips to $70 billion
In brief
- USDC supply fell $800 million to $70 billion in the week ending October 29.
- Circle redeemed roughly $11.7 billion and issued about $10.9 billion in new USDC.
- Supply fell about $500 million the prior week, a roughly $1.3 billion two-week decline.
- Reported reserves of roughly $71.4 billion still exceeded circulating USDC supply.
- A smaller USDC float means less interest income for Circle, according to Crypto Briefing.
Redemptions outpaced issuance
The math is simple. More USDC went out than came in, and the gap trimmed $800 million off total supply over the week.
The week before looked similar. USDC supply fell about $500 million in the week ending October 22, which puts outflows across the two weeks at roughly $1.3 billion. Crypto Briefing called that a modest decline against a $70 billion base (a slow leak, not a run).
Reserves still above supply
Circle's reported reserves stood at roughly $71.4 billion as of October 29, more than the $70 billion of USDC in circulation. On those reported figures, each token was still fully backed.
According to the report, reserves have consistently run above circulating supply, which has kept USDC's 1:1 backing with cash equivalents intact. Crypto Briefing said the $11.7 billion in redemptions went through without any sign of strain on that backing.
That's the stablecoin side of the story.
Why shareholders are watching
So what does a smaller float mean for Circle itself? Circle's revenue depends heavily on interest earned on its reserves, Crypto Briefing noted.
Fewer USDC tokens in circulation mean fewer dollars parked in Treasuries and repos, which means less interest coming in.
Two weeks of net redemptions don't change the reserve picture Circle reports. They do shrink the interest-earning pool, though, and Crypto Briefing said Circle's earnings are sensitive enough to float size that even moderate shrinkage gets shareholders' attention.
Frequently asked questions
Why did USDC supply fall to $70 billion?
In the week ending October 29, Circle redeemed roughly $11.7 billion in USDC and issued about $10.9 billion, according to its weekly data as reported by Crypto Briefing. Redemptions outpaced issuance by enough to cut $800 million from total supply. It was the second weekly decline in a row.
Is USDC still fully backed after the redemptions?
Circle's reported reserves were roughly $71.4 billion as of October 29, more than the $70 billion of USDC in circulation. On those reported figures, each token was still fully backed. Crypto Briefing said the $11.7 billion in redemptions went through without any sign of strain on that backing.
How does a smaller USDC supply affect Circle's revenue?
Circle's revenue depends heavily on interest earned on its reserves, according to Crypto Briefing. Fewer USDC tokens in circulation means fewer dollars held in Treasuries and repos, so less interest income comes in. Crypto Briefing said this sensitivity means even moderate shrinkage draws shareholder attention.
