USDC

2023 - 3 - 12

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Image courtesy of "Bloomberg"

Circle's USDC Stablecoin Depegs on $3.3 Billion SVB Exposure (Bloomberg)

USD Coin, the stablecoin issued by Circle Internet Financial Ltd., fell further from its dollar peg and traded as low as 90 cents as investors reacted to ...

Circle said $3.3 billion of its about $40 billion of reserves backing the stablecoin remain at Silicon Valley Bank, which became one of the largest bank failures in US history on Friday. Stablecoin Firm Circle Reveals $3.3 Billion Exposure to Silicon Valley Bank UK to Spend £20 Billion on Carbon Capture in Clean Energy Push

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Image courtesy of "Coindesk"

Traders Bet on USD Coin Rebound as USDC Falls to 90 Cents (Coindesk)

Some $4 million in USDC futures were liquidated in the past 24 hours, Coinglass data shows.

[ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [strict set of editorial policies](/ethics/). As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of [stock appreciation rights](https://www.investopedia.com/terms/s/sar.asp), which vest over a multi-year period. The funding was paid by traders who shorted USDC, paying over 0.4% to borrow the asset and bet on lower prices. Leverage could potentially magnify returns for traders betting on a recovery.

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Image courtesy of "Barron's"

Stablecoin USDC, Part of Crypto's Bedrock, Is Caught in Silicon ... (Barron's)

Issuer Circle Internet Financial said it held a chunk of its reserves at the failed bank, while the token's price fell below a dollar.

[said](https://twitter.com/circle/status/1634391505988206592) $3.3 billion of its token’s $40 billion in reserves were at the bank, which regulators [shut down](https://www.barrons.com/articles/svb-financial-stock-portfolio-outlook-loss-93287f3d?mod=hp_LEAD_1&mod=article_inline) earlier in the day. One of the most important underpinnings of the cryptocurrency market appears to be on shaky ground, as stablecoin issuer Circle Internet Financial disclosed that a significant portion of its reserves are locked up at the failed Silicon Valley Bank and the token struggled to maintain its dollar peg. Stablecoin USDC, Part of Crypto’s Bedrock, Is Caught in Failed Silicon Valley Bank

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Image courtesy of "CNBC"

Stablecoin USDC breaks dollar peg after firm reveals it has $3.3 ... (CNBC)

The U.S. cryptocurrency firm Circle's USD Coin lost its dollar peg and fell to a record low Saturday morning.

banking failure](https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html) since the 2008 financial crisis. The company's spectacular implosion began late Wednesday when it surprised investors with news that it needed to raise [$2.25 billion](https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html) to shore up its balance sheet. [shuttered](https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html) SVB Friday and seized its deposits in what has become the [largest U.S. In a tweet Friday, Circle said it has $3.3 billion in remaining reserves at SVB. USDC is designed to trade at $1, but it fell below 87 cents on Saturday, according to data from CoinDesk. The U.S.

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Image courtesy of "CNN"

Stablecoin USDC breaks dollar peg after revealing $3.3 billion ... (CNN)

Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the US firm behind the coin, revealed some of the ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. USDC’s price usually holds close to $1, making Saturday’s drop unprecedented. It recovered slightly to trade around $0.90. [tweet](https://twitter.com/circle/status/1634341007306248199) Friday it and USDC “continue to operate normally” while the firm waits for clarity on what will happen to Silicon Valley Bank depositors. [collapsed lender Silicon Valley Bank](http://www.cnn.com/2023/03/11/business/svb-collapse-roundup-takeaways/index.html), the company said in a [tweet](https://twitter.com/circle/status/1634391505988206592) Friday.

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Image courtesy of "Decrypt"

USDC Stablecoin Falls to 87 Cents After Circle Discloses Exposure ... (Decrypt)

Circle says $3.3 billion of the cash reserves backing USDC remain at shuttered Silicon Valley Bank. USDC, DAI, and USDD have all depegged.

[revealed their exposure to SVB](https://decrypt.co/123199/silicon-valley-bank-crypto-companies-contagion), including BlockFi, Circle, Avalanche, Proof, and Yuga Labs. DAI is at 93 cents as of Saturday morning, USDD is at 95 cents, and USDP is at 96 cents. Dollar-pegged stablecoins are designed to be "stable" in that they keep a constant price of $1. That means customers with USDC held on those exchanges cannot get it out or convert it to something else, and are nervously waiting to hear more from Circle or see USDC regain its peg. dollars." On Saturday morning, it had begun to recover.

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Image courtesy of "Reuters"

Stablecoin USDC breaks dollar peg after revealing $3.3 billion ... (Reuters)

LONDON, March 11 (Reuters) - By Elizabeth Howcroft and Rishabh Jaiswal. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the U.S. bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors. USDC's price usually holds close to $1, making Saturday's drop unprecedented. It recovered slightly to trade around $0.90 by 1120 GMT.

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Image courtesy of "Coindesk"

Circle to 'Cover Any Shortfall' in USDC Reserves, Sparking ... (Coindesk)

The pledge came as crypto traders fretted over the value of USDC, a stablecoin meant to be pegged to the U.S. dollar but which fell in value after Silicon ...

[ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [strict set of editorial policies](/ethics/). As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of [stock appreciation rights](https://www.investopedia.com/terms/s/sar.asp), which vest over a multi-year period. dollar but which fell in value after Silicon Valley Bank’s collapse. Circle was holding $3.3 billion of USDC’s cash backing at Silicon Valley Bank when the FDIC seized the bank’s assets on Friday.

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Image courtesy of "Decrypt"

Circle To 'Stand Behind' USDC, Cover $3.3 Billion Shortfall Held in ... (Decrypt)

The stablecoin issuer has released a statement asserting that USDC “will remain redeemable” for US Dollars at a 1:1 ratio.

[blog post](https://www.circle.com/blog/an-update-on-usdc-and-silicon-valley-bank), Circle wrote that the company is legally obliged to “stand behind” [USDC](https://decrypt.co/resources/us-dollar-coin) and will cover any shortfall using corporate resources—and "external capital if necessary"—to ensure that the [stablecoin](https://decrypt.co/resources/stablecoins) can be redeemed at a ratio of 1 for 1 with the U.S. banking hours constrain its issuance and redemption, adding that USDC liquidity operations will resume “as normal” when banks open on Monday. Though these transfers had not yet been settled as of close of business Friday, we remain confident in the FDIC’s management of the SVB situation and stand ready to receive these funds.” dollar following a bank run on Silicon Valley Bank and the disclosure that $3.3 billion in USDC’s cash reserves was held by the bank that the FDIC had taken over. “USDC is currently collateralized 77% ($32.4B) with U.S. CEO Jeremy Allaire reiterated the commitment in a [Twitter thread](https://twitter.com/jerallaire/status/1634649886397267969).

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Image courtesy of "Investopedia"

SVB Collapse Sparks Stablecoin Turmoil as USDC Loses Dollar Peg (Investopedia)

USDC stablecoin is latest to lose U.S. dollar peg after owner announced holdings at the failed Silicon Valley Bank.

treasuries," and that "USDC reserves are held in the custody and management of leading U.S. [$40 billion collapse](https://www.investopedia.com/sec-sues-terra-and-founder-for-fraud-7111256) of the TerraUSD stablecoin last May. [halt the agreement](https://www.investopedia.com/binance-and-paxos-caught-up-in-cryto-regulatory-crackdown-7108974) in February and BUSD lost more than 50% of its market cap. Federal Reserve Chairman Jerome Powell's [comments](https://www.investopedia.com/fed-vice-chairman-offers-olive-branch-to-crypto-7253352) this week that he sees "turmoil," and "run risk" in digital currencies haven't aged well in light of the Silicon Valley Bank collapse. Its website says "every digital dollar of USDC on the internet is 100% backed by cash and short-dated U.S. The cryptocurrency sector faces a major headache with another stablecoin in trouble. Paxos was involved in a commercial partnership to mint the stablecoin for Binance, the world's largest crypto exchange. "Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB," a Circle tweet said.4 That $40 billion figure has now been reduced and almost 10% of the USDC reserves are now held in the failed bank. The 1:1 peg to the U.S. Payments giants Visa (V) and Mastercard (MA) were both previously involved in the testing of crypto payments using USDC.56 Silicon Valley Bank (SIVB) collapsed on Friday, marking the largest U.S. currency amid a surge of investor withdrawals after its founder, Circle Internet Financial Ltd., said it had $3.3 billion invested in the collapsed

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Image courtesy of "Axios"

Circle scrambles amid SVB fallout as USDC loses 1:1 peg (Axios)

Circle seeks to reassure users of the world's second largest stablecoin following the collapse of one of its banking partners.

One of those is SVB, [which was seized](https://www.axios.com/2023/03/11/the-largest-bank-run-in-history) by the Federal Deposit Insurance Corporation (FDIC) on Friday. - Circle initiated a reshuffling of its cash holdings, as uncertainty about the bank grew. As such, it generally maintains a price of almost exactly $1, even in the hectic cryptocurrency markets. banking system is creating fears for users of the $40 billion stablecoin, because a portion of its cash reserves were held at SVB, which the U.S. USDC's struggles suggest more financial turmoil is in store, as markets fully digest the collapse of SVB. treasuries, while $9.7 billion is held Why it matters: Uncertainty in the U.S. [also previously disclosed](https://twitter.com/circle/status/1634391505988206592)that $3.3 billion of its fund are currently stuck at SVB. [rapid collapse of Terra](https://www.axios.com/2022/06/06/terra-stablecoin-fell-apart-bitcoin-bear-report), another stablecoin; while [Tether's USDT](https://www.axios.com/2022/11/10/tethers-usdt-stablecoin-depegs-from-dollar-for-a-brief-window)(the world's largest) also briefly de-pegged in November. [an update](https://www.circle.com/blog/an-update-on-usdc-and-silicon-valley-bank) for users Saturday afternoon, Circle said that "While USDC can be used 24/7/365 on chain, issuance and redemption is constrained by the working hours of the U.S. treasuries, such that the tokens are always redeemable 1:1 for actual dollars in a traditional bank account. dollars or short-term U.S.

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