USD Coin (USDC) issuer Circle plans to use “corporate resources” to cover the shortfall on its reserves following Silicon Valley Bank’s shutdown, said the company in a statement on March 11. 

According to Circle, USDC liquidity operations will “resume as normal when banks open on Monday morning in the United States,” enabling USDC redemption at 1:1 with the U.S. dollar.

The announcement came after the stablecoin lost its $1 peg on March 11 to trade as low as $0.87 before slowly re-pegging at $0.98 at the time of publication. The stablecoin lost its peg after the disclosure of $3.3 billion of Circle’s reserve at Silicon Valley Bank.

USD Coin price slowly recovers after depegging from the U.S. dollar. Source: CoinMarketCap

Silicon Valley is one of the biggest lenders in the United States and a major player for venture-backed companies. The bank was shut down on March 10 by the California Department of Financial Protection and Innovation, fueling fears about its future. The Federal Deposit Insurance Corporation was appointed as the receiver to protect insured deposits.

Cointelegraph

Cointelegraph

BTC NewswireAuthor posts

BTC Newswire Crypto News at your Fingertips

Related Posts ...

Comments are disabled.