Stablecoin inflows weak; redemptions outpace issuance

USDC recorded $1.6 billion in net outflows over the past month. Redemptions hit $27.6 billion. New issuance totaled $26.0 billion. The total supply now sits at $73.1 billion. Circle holds $73.4 billion in reserves, backed by cash and short-dated Treasuries. The 1:1 backing ratio is intact.

The broader stablecoin market cap is about $317 billion, up more than 50% since early 2025. The growth rate has slowed, and USDC's shrinking supply is one sign.

The GENIUS Act, signed July 18, 2025, requires stablecoin issuers to hold 1:1 reserves and provide regular attestation reports. Circle and Tether both hold Treasury bills as reserves. Analysts have modeled that a 10% simultaneous redemption of major stablecoins, roughly $31 billion to $32 billion, could lift short-term T-bill yields by about 2.9 basis points.

The next scheduled stablecoin attestation reports are due within 90 days of the GENIUS Act signing.