The USDC issuer said its operations will resume as usual on Monday and that the stablecoin will remain redeemable one-for-one with the U.S. dollar after Silicon Valley Bank collapsed.
Highlights
- Circle’s stablecoin USDC will remain redeemable one-for-one with the U.S.
- dollar after Silicon Valley Bank collapsed.
- USDC lost its peg shortly after SVB collapsed and dropped to as low as $0.88.
- The company has $3.3 billion of its reserves behind the stablecoin in the failed bank, which is popular among tech firms.
- Circle is “hopeful” that the FDIC will seek a purchaser for SVB that will “ensure all depositors are made whole” Returns for clients could take time, however, but returns for clients may take time.
- The bank’s failure sent shockwaves through the crypto markets and the tech industry.
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