Circle plans to use "corporate resources" to cover the shortfall on its USD Coin reserves
Highlights
- USD Coin (USDC) issuer Circle plans to use “corporate resources” to cover shortfall on its reserves following Silicon Valley Bank’s shutdown.
- USDC liquidity operations will “resume as normal when banks open on Monday morning in the United States,” said the company in a statement.
- The announcement came after the stablecoin lost its $1 peg on March 11 to trade as low as $0.87 before slowly re-pegging.
- Silicon Valley is one of the biggest lenders in the U.S.
- 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.
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