Circle Weekly Operational Data Exposure: USDC Net Outflow of $1.1 Billion, Reserve Composition Analysis

LiquidityWizard · 2026-01-04T18:34:38+00:00

In the past 7 days, Circle's USDC issuance has been less than redemptions, with a net decrease of approximately 1.1 billion tokens. The reserve assets amount to $76.3 billion, maintaining a healthy coverage ratio. Market demand for USDC is temporarily balanced, reflecting liquidity conditions and trading sentiment fluctuations. Despite challenges, Circle's high-quality asset allocation supports the long-term stability of USDC.

LiquidityWizard

2026-01-04 18:34:38

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According to the latest market data statistics, Circle’s USDC operations over the past 7 days show a pattern of issuance being less than redemption. Specifically, during this period, approximately 4.6 billion USDC were newly issued, while redemptions reached 5.7 billion USDC, resulting in an overall net decrease of about 1.1 billion tokens in circulation.

Reserve Adequacy Continues to Remain Stable

The current total circulation of USDC is 75.9 billion tokens (real-time data shows it has reached 75.4 billion), corresponding to reserve assets of approximately $76.3 billion, maintaining a healthy reserve coverage ratio. The reserve structure is particularly noteworthy — the largest position is in overnight reverse repurchase agreements, totaling about $51 billion, accounting for nearly 70%; holdings of short-term government bonds within three months amount to approximately $14.6 billion, serving as high liquidity allocations; deposits at systemically important financial institutions are about $10 billion; other commercial bank deposits are approximately $800 million.

Market Signals Behind Issuance and Redemption Differences

Circle net redeemed 1.1 billion USDC during this cycle, indicating that market demand for stablecoins is temporarily balanced. This situation, where issuance is less than redemption, reflects that the current incremental demand for USDC has not been as strong as expected, possibly related to market liquidity conditions and trading sentiment fluctuations. However, from the perspective of reserve adequacy, Circle’s maintenance of high-quality asset allocations continues to provide strong support for the long-term stability of USDC.

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