Circle says outstanding USDC transactions won’t process until Monday

Quick Take

  • Circle issued a note to trading firms confirming outstanding transactions will be processed on Monday.
  • The message relates to a delay in Signature Bank’s Signet platform, which enables real-time payments for commercial clients.

USDC transactions through Signature Bank's Signet network won't process until Monday, according to a note sent by Circle to trading firms.

Circle, which founded USDC in 2018 with Coinbase, revealed Friday that $3.3 billion of its reserves behind its flagship stablecoin were stuck with the failed Silicon Valley Bank. The news triggered a sharp decline in USDC, which is meant to stay pegged one-to-one to the U.S. dollar. 

The note confirms transactions on Signet—which traders used to move funds over the weekend— “will be processed on Monday when banking resumes during normal working hours.”

The Signet system, designed to enable real-time payments for commercial clients, is active but is “reaching a capacity threshold which is causing the temporary delay,” according to the note sent by Circle and reviewed by The Block. 

Circle didn't immediately respond to a request for comment.

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The delay may explain why the premiums witnessed on exchanges like Coinbase following the flight from USDC are not being arbitraged away as their order books merge USD with USDC.

USDC lost its peg to the U.S. dollar overnight, dropping as low as $0.88 following the collapse of Silicon Valley Bank. The crypto market was frustrated with Circle over a lack of transparency surrounding its exposure to the bank, which it eventually confirmed as being $3.3 billion.

Signature is one of the few remaining U.S. crypto-friendly banks after Silvergate Bank voluntarily liquidated and wound down operations on Wednesday.


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James Hunt is a reporter at The Block, based in the UK. As the writer behind The Daily newsletter, James also keeps you up to speed on the latest crypto news every weekday. Prior to joining The Block in 2022, James spent four years as a freelance writer in the industry, contributing to both publications and crypto project content. James’ coverage spans everything from Bitcoin and Ethereum to Layer 2 scaling solutions, avant-garde DeFi protocols, evolving DAO governance structures, trending NFTs and memecoins, regulatory landscapes, crypto company deals and the latest market updates. You can get in touch with James on Telegram or X via @humanjets or email him at [email protected].
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