Voyager Redeems $150M USDC to Fiat Through Circle

• Voyager has initiated converting its USDC holdings into fiat currency by redeeming $150M via Circle’s service.
• This move comes on the heels of Voyager’s ongoing battle over its restructuring plan, including Binance’s bid to purchase the company, as well as numerous changes to the stablecoin market in recent weeks.
• 97% of Voyager account holders voted in favor of Binance’s proposed restructuring plan last December, which would see account holders recoup about 73% of the funds remaining in their balance.

Voyager Redeems USDC for Fiat Through Circle

Voyager has begun cashing out its USDC holdings to fiat currency by redeeming $150 million through Circle’s service. The funds were transferred to Circle but have not yet been burned. This move comes after numerous changes to the stablecoin market in recent weeks that have seen USDC lose its USD peg due to a run on three traditional U.S. banks.

Voyager Struggles with Restructuring Plan

Voyager entered into liquidation in July 2022 after being exposed to unpaid loans totaling $666 million from Singapore-based Three Arrows Capital and subsequently facing contagion issues still felt today across crypto markets. Despite having the overwhelming support of 97% of Voyager account holders, who voted in favour of Binance’s proposed restructuring plan last December that would see them recoup 73% of their funds, this bid has faced regulatory hurdles from the SEC for failing to provide certain pieces of information needed for sale approval.

USDC Exchange Withdrawals vs Deposits

Since USDC lost its USD peg around two weeks ago, there has been a significant reshuffling within users diverting their focus away from USDC towards alternative stablecoins instead. Glassnode reported an increase in withdrawals compared with deposits since then (see graph).

Coinbase Transfers $150 Million USDC To Circle

On the same day that Voyager began cashing out their USDC holdings, Coinbase also transferred $150 million worth of USDC to Circle presumably for withdrawal too.


The news that Voyager is redeeming its USDC holdings for fiat currency is further evidence that cryptocurrency exchanges are slowly transitioning away from stablecoins towards other forms of digital assets such as Bitcoin and Ethereum. While it remains uncertain what will happen with Binance’s proposed restructuring plan or whether it will go ahead at all, this latest move provides some insight into where exchanges stand on using different types of digital assets moving forward.

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