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USDC Supply Drop This Week: Circle Redeemed $11.7B USDC
As of November 2, 2026, USDC supply drop news today comes straight from Circle’s weekly data.&nbsp;
Per the<a href="https://www.circle.com/transparency" rel="noopener noreferrer nofollow">Circle transparency page</a>, issued $10.9B and redeemed $11.7B in the seven days ending October 29, 2026.&nbsp;
Circulation fell by about $800M to $70.0B, so USDC circulating supply today stands at that level. USDC news today also lands in <a href="https://www.coingabbar.com/en/crypto-news-november-2-bitcoin-ethereum-fear-greed-us-midterms" rel="noopener noreferrer nofollow">crypto news today</a>, where stablecoin outflows draw close attention.
WSX also covered this news in<a href="https://x.com/WallStreetXHQ/status/2116892919739146726" rel="noopener noreferrer nofollow">its tweet on X</a>, saying redemptions exceeded issuance during the week ending October 29.<img alt="WallstreetX official tweet" src="https://d3iuzwoiyg9qa8.cloudfront.net/webadmin/storage/public/commonEditerImage/uYwIeY98piz3cH723y77UofduWgeeBCa9U7od0VE.png" width="300" height="500" title="WallstreetX official tweet">
<h2 id="span-style-font-size-16px-color-inherit-font-weight-bolder-why-is-usdc-supply-dropping-redemptions-beat-issuance-span">Why Is USDC Supply Dropping? Redemptions Beat Issuance</h2>
<a href="https://www.coingabbar.com/en/circle-un-stablecoin-payments-news-grant" rel="noopener noreferrer nofollow">Circle USDC redemptions</a> exceed issuance when institutions return more tokens for dollars than they deposit to mint new ones.&nbsp;
Per<a href="https://www.circle.com/usdc" rel="noopener noreferrer nofollow">Circle’s product page</a>, redeeming burns tokens and removes them from circulation, while minting adds them.
The Mint, the direct channel, serves institutions only. Most individual holders reach redemptions through exchanges or wallets, and those platforms then settle with it.
They&nbsp;has not published a reason for the weekly move, and WSX did not cite one either, so the cause of the USDC net redemption remains unconfirmed.
<h2 id="span-span-style-font-size-16px-usdc-supply-drops-800m-what-did-data-show-span-span">USDC Supply Drops $800M: What Did Data Show?</h2>
<div>
 <table>
 <colgroup>
 <col width="401">
 <col width="223">
 </colgroup>
 <tbody>
 <tr>
 <td>Metric (7 days to Oct 29)</td>
 <td>Value</td>
 </tr>
 <tr>
 <td>Issued</td>
 <td>$10.9B</td>
 </tr>
 <tr>
 <td>Redeemed</td>
 <td>$11.7B</td>
 </tr>
 <tr>
 <td>Net change</td>
 <td>About -$0.8B</td>
 </tr>
 <tr>
 <td>In circulation</td>
 <td>$70.0B</td>
 </tr>
 <tr>
 <td>Total reserves</td>
 <td>$71.4B</td>
 </tr>
 </tbody>
 </table>
</div>
USDC issuance of $10.9B fell $0.8B short of redemptions. By CoinGabbar’s calculation, that is roughly 1.1% of the prior supply.&nbsp;
The weekly redemptions figure was the larger side of the flow. They says it discloses reserve holdings weekly, along with mint and burn flows, so the same release carries both numbers.
<h2 id="span-span-style-font-size-16px-is-usdc-still-safe-after-supply-drop-what-reserves-show-span-span">Is USDC Still Safe After Supply Drop? What Reserves Show</h2>
The reports $71.4B in total reserves as of October 29, which is $1.4B above circulation.&nbsp;
On those figures, each token carried more than one dollar of backing on that date. USDC reserves split as follows:
<ul>
 <li style="margin-left: 0px; list-style-type: disc">Overnight reverse Treasury repo: $32.9B</li>
 <li style="margin-left: 0px; list-style-type: disc">Treasuries maturing under three months: $27.5B</li>
 <li style="margin-left: 0px; list-style-type: disc">Deposits at systemically important institutions: $10.4B</li>
 <li style="margin-left: 0px; list-style-type: disc">Other bank deposits: $0.6B</li>
</ul>
Per official, most of the reserve sits in the<a href="https://www.blackrock.com/cash/en-us/products/329365/" rel="noopener noreferrer nofollow">Circle Reserve Fund</a>, a government money market fund managed by BlackRock.&nbsp;
It&nbsp;adds that a Big Four accounting firm gives monthly assurance that reserves exceed circulation.
<h2 id="span-span-style-font-size-16px-what-happens-when-usdc-supply-falls-peg-and-market-view-span-span">What Happens When USDC Supply Falls? Peg and Market View</h2>
They states the token is redeemable 1:1 for dollars, which underpins the USDC peg. Live price and USDC market cap can be <a href="https://coingecko.com/en/coins/usd-coin" rel="noopener noreferrer nofollow">checked on CoinGecko</a>.
They also notes that the token is built to hold price equivalence with the dollar, and it lists regulated affiliates as the issuers.&nbsp;
Readers comparing USDC vs USDT supply change should note that this release <a href="https://www.coingabbar.com/en/circle-stablecoin-role-in-crypto-market" rel="noopener noreferrer nofollow">covers Circle only</a>. Tether reports separately, and the data here gives no ranking between the two.
<h2 id="span-span-style-font-size-16px-circle-usdc-supply-drop-explained-expert-view-span-span">Circle USDC Supply Drop Explained: Expert View</h2>
Weekly flows can swing in either direction, and publishes them every week.&nbsp;
Analysts following<a href="https://www.coingabbar.com/en/crypto-news-english" rel="noopener noreferrer nofollow">crypto news</a> may read one week of net outflow as routine movement rather than a trend.&nbsp;
<a href="https://www.coingabbar.com/en/crypto-blogs-details/what-are-stablecoins-and-how-do-they-function" rel="noopener noreferrer nofollow">A stablecoin supply</a> drop of about 1.1%, with reserves above circulation, could point to rebalancing, though has given no cause.
Is USDC losing supply? The next weekly release will show. Price impact, if any, stays uncertain.
<h3 id="span-span-style-font-size-16px-three-points-to-watch-next-span-span">Three points to watch next:</h3>
<ul>
 <li style="margin-left: 0px; list-style-type: disc">Whether redemptions stay above issuance in the next release</li>
 <li style="margin-left: 0px; list-style-type: disc">Whether reserves keep exceeding circulation</li>
 <li style="margin-left: 0px; list-style-type: disc">Whether the October monthly attestation appears on the transparency page</li>
</ul>
Disclaimer: This article is for information only and is not financial, legal, or investment advice. Crypto assets are volatile, and you can lose money. Verify details with official sources before making any decision.

USDC Supply Drop This Week: What Circle Weekly Data Quietly Shows

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