Obtained by adding linked to Circle’s $3.3 billion in reserves stored at Silicon Valley Bank and its new banking partners have caused the USDC to return to its $1 peg.
USDC is regaining its $1 peg after CEO Jeremy Allaire’s assurance that the company’s reserves are secure and that it has new banking partners lined up for “banking open tomorrow.”
According to CoinGecko statistics, USDC is trading at $0.99, up 3.3% in the last 24 hours. The price fell to as low as $0.87 over the weekend due to worries regarding the $3.3 billion in USDC reserves held by Silicon Valley Bank.
In addition, Circle maintains private reserves at the newly bankrupt Silvergate. Allaire complimented the U.S. government and Federal Reserve in a March 12 Twitter thread for their $25 billion financing package to assist liquidity-challenged institutions such as SVB:
“100% of USDC reserves are likewise secure, and we will transfer the remaining SVB funds to BNY Mellon.” As previously reported, USDC liquidity operations will restart tomorrow morning when banks open.”
In addition, Allaire said that with the collapse of crypto-friendly Signature Bank on March 12, Circle would be temporarily “relying on settlements via BNY Mellon” to complete USDC minting and redemption.
In this area, though, the CEO disclosed that Circle is “possibly bringing on a new transaction banking partner tomorrow with automated minting and redemption.”
Allaire’s statement and the Federal Reserve comments have led to a massive increase in asset values across the board, with the entire market capitalization of cryptocurrencies already above $1 trillion after a severe decrease to $961 billion on March 11.
In the previous twenty-four hours, Bitcoin and other assets have surged 10.6%, 11.4%, 12.3%, 11.7%, and 15.1%, respectively.
Remarkably, this is the case despite Signature Bank’s failure. Signature was believed to be the only crypto-friendly bank left in the United States after the demise of Silvergate and SVB. What the primary financial entry and exit points into crypto are is now unknown.
Also Read: Feds Close Down Signature Bank; Depositors Of Signature And Silicon Valley Banks Will Be Refunded
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