According to Bloomberg, citing data from the Nansen analytical platform, on March 13, investors in USDC withdrew almost $1.74 billion. This is more than 2% of USDC working capital.

The outflow came after the stablecoin lost its peg to the US dollar last week. The reason for the decoupling was that the issuer of USDC, Circle, announced the placement of $ 3.3 billion – 8% of the stablecoin reserves – in the bankrupt Silicon Valley Bank (SVB).

“We haven’t seen such a drawdown in stablecoin supply since the BUSD crackdown last month,” said Andrew Thurman, head of content at Nansen.

Recall that in early February, the New York State Department of Financial Services (NYDFS) demanded that Paxos Trust stop issuing BUSD due to security violations. Within a day after the announcement, the outflow of funds from Binance amounted to $916 million.

According to Nansen, the assets of institutional investors in USDC are at the lowest level in the last few months. This is a sign that investors are either paying them off or simply staying on the sidelines.

“Institutional investors still own a huge amount of USDC, but it seems that those who got rid of them are hesitant to return,” Thurman said.

Earlier, Circle CEO Jeremy Allaire said the company would transfer all remaining deposits from SVB to BNY Mellon accounts. In addition, Circle called on the US Congress to expedite the development of regulation for stable cryptocurrencies.