Circle · Federal Reserve (FED) · CryptoSlate
Fed guarantees 2-day stablecoin payouts, but $76 billion remains blocked
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The Federal Reserve's stablecoin proposal would put a general two-business-day limit on redemption by issuers it supervises.
Key facts
- From March 10 to 13, USDC supply fell $2.7 billion while identified exchange balances rose $600 million
- After March 13, supply fell another $8.1 billion and exchange balances fell $4.9 billion
- The Fed proposal, published in the Federal Register on Sept. 29 after the Board announced it on Sept
- The Andersen snapshot itself also has a scope problem for anyone trying to apply the Fed proposal to the full $76 billion
Summary
01 An Andersen Institute snapshot put $76 billion of 12 reserve-backed dollar stablecoins at exchanges on July 28, a lower-bound estimate. 02 The Fed proposes a general two-business-day redemption limit for Board-supervised issuers, with onboarding requirements and stated exceptions. 03 Exchange customer withdrawals follow venue terms, while Circle's direct USDC redemption requires an eligible Circle Mint account. For a customer holding stablecoins at an exchange, the first step is getting that venue to release or convert the balance.