USDC Reinstates Peg to $1 After Fed Announcement

By Victoria Lyapota Read 2 minutes Views 9 Posted on 03/13/2023 Updated on 03/13/2023

The Circle USD Coin (USDC) stablecoin will return to its $1 peg after CEO Jeremy Aller confirmed his reserves are safe and the company has new banking partners lined up for “banks opening tomorrow morning.”

According to data from CoinGecko, USDC is up 3.3% over the past 24 hours, and is trading at $0.99 at the time of writing.

USDC price chart. Source: CoinGecko

Prices fell to $0.87 over the weekend amid concerns over $3.3 billion in USDC reserves held by Silicon Valley Bank (SVB), which was shut down by the California Department of Financial Protection and Innovation on March 10.

Circle also has an undisclosed nest egg in recently bankrupt Silvergate.

In a March 12 Twitter post, Aller praised the U.S. government and the Federal Reserve for their $25 billion funding program to support liquidity-strapped banks like SVB:

“100% of the USDC reserve is also safe and we will complete the transfer of the remaining SVB funds to BNY Mellon. As previously reported, USDC liquidity operations will resume tomorrow morning when banking reopens.”

Aller added that after the collapse of crypto-friendly Signature Bank on March 12, Circle can no longer process USDC minting and redemption through SigNet, and the company will temporarily “rely on settlement through BNY Mellon.”

Source of information: Compiled from CRYPTOHAMSTER by 0x Information.The copyright belongs to the author Виктория Ляпота, and shall not be reproduced without permission

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