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> redemption is constrained by the working hours of the U.S. banking system

Why do they keep saying this? This should’ve always been the case, regardless of SVB’s collapse. Seems more like a non sequitur to cover for an actual issue.



Typically, Coinbase has been able to absorb liquidity on weekends to give consumers the illusion that USDC is redeemable outside of banking hours, but the SVB crash caused their weekend reserves to run out.

If SVB didn't crash, there wouldn't have been a huge spike in USDC redemptions, and Coinbase would have been able to service redemptions using their weekend reserves like they always have.


Some people are saying "gotcha! you can't redeem" as if that's a real problem and Circle is clarifying that you could never redeem on the weekend.


But something must be different this weekend compared to all the ones before, at least at Coinbase: https://news.ycombinator.com/item?id=35105039


There's a bank run on USDC right now which is probably exceeding Coinbase's cash on hand or risk tolerance.




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