USDC

Volatility is expected to continue throughout the weekend as panic sets in after the Silicon Valley Bank collapse. The failure of SVB is hurting the reserve ...

Ket to that will be if a buyer of the bank can be found. [Peter Thiel's Founders Fund advised depositors to get out](https://www.bloomberg.com/news/articles/2023-03-11/thiel-s-founders-fund-withdrew-millions-from-silicon-valley-bank), which was the nail in the coffin for SVB – bank runs are hard to stop. The transaction ended up costing $2,080,468.85 to receive $0.05 of USDT: DAI is the fourth-largest stablecoin. The Fed putting up interest rates means the value of bonds falls, because bond yields and price have an inverse relationship. This is common practice in the fractional banking model that underpins modern banking. Traders and crypto firms reacted to the news of USDC reserve exposure to SVB by exiting their positions in the stablecoin and moving into USDC has $3.3 billion tied up at SVB. USDC and DAI in trouble – which of the top stablecoins are at risk? USDC is the second-largest stablecoin in the crypto ecosystem and is an essential part of the industry's plumbing. [FDIC the receiver](https://www.fdic.gov/news/press-releases/2023/pr23016.html) – after depositors initiated a run on the bank by trying to withdraw as much as $45 billion on Thursday. The failure of SVB is hurting the reserve position of

The USDC stablecoin lost its $1 peg after its issuer Circle said it has $3.3 billion stuck in the embattled Silicon Valley Bank.

banking system.” According to him, the principal balance of USDC reserves is held in the Circle Reserve Fund – 80% short-dated U.S. Nansen [corroborated](https://twitter.com/nansen_ai/status/1634384740886396930?s=20) the report, adding that 70% of these burns were made in the last 8 hours. Meanwhile, Circle’s chief strategy officer and head of global policy, Dante Disparte, said the issuer tried to protect the stablecoin “from a black swan failure in the U.S. BeInCrypto data showed that the stablecoin tanked 10% following the news to $0.90 as of press time. The U.S.-based exchange plans to recommence the conversion on Monday when banks open. The 76.48% balance belongs to USDC as of press time. Disparte added that “as with Silvergate, our teams have worked at speed to limit any exposure to banks. This includes a wire transfer request made before SVB’s FDIC receivership. According to the data, USDT accounts for 1.57% of the reserve, while DAI makes up 21.94%. The regulators took control of the bank. [stablecoin](https://beincrypto.com/learn/what-is-stablecoin/) issuer [confirmed](https://twitter.com/circle/status/1634391505988206592?s=20) it had exposure to the institution, leading to massive withdrawals from the platform.

Crypto exchange Coinbase said Friday it is temporarily suspending the conversion between stablecoin USDC and USD over the weekend, after the stablecoin's...

Whether and how much depositors with over $250,000 would get their money back, depends on the amount of money FDIC receives from selling Silicon Valley Bank’s assets. The Federal Deposit Insurance Corporation has taken over more than $175 billion in deposits at Silicon Valley Bank. Coinbase said it would resume the conversions between USDC and USD on Monday. [BK, -1.44%](/investing/stock/BK?mod=MW_story_quote), Citizens Trust Bank, Customers Bank, New York Community Bank, a division of Flagstar Bank, N.A., Signature Bank [SBNY,](/investing/stock/SBNY?mod=MW_story_quote), Silicon Valley Bank and Silvergate Bank -22.87% [SI,](/investing/stock/SI?mod=MW_story_quote)as of Jan.31, according to -11.27% [an attestation report](https://www.circle.com/hubfs/USDCAttestationReports/2023%20USDC_Circle%20Examination%20Report%20January%202023.pdf)in March. [said](https://twitter.com/circle/status/1634391505988206592?s=20) about $3.3 billion, or more than 8% of over $40 billion USDC reserves, are held at Silicon Valley Bank, which collapsed on Friday. Crypto exchange Coinbase said Friday it is temporarily suspending the conversion between stablecoin USDC and USD over the weekend, after the stablecoin’s creator Circle

San Francisco: In a shock for crypto investors, top cryptocurrency exchanges Binance and Coinbase on Saturday temporarily suspended USDC stablecoin.

When banks open on Monday, we plan to re-commence conversions,” it added. A Circle spokesperson said that “Silicon Valley Bank is one of six banking partners Circle uses for managing the approximately 25 per cent portion of USDC reserves held in cash”. SVB’s collapse has sent shockwaves across the tech industry.

Stablecoin issuer Circle disclosed late Friday that around $3.3 billion of its $40 billion USDC reserves remained at Silicon Valley Bank.

While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally. Friday evening in New York, the price of USD Coin dropped to $0.9850. As a result, late this week, concerns grew concerning USDC. [now in charge](https://dfpi.ca.gov/2023/03/10/california-financial-regulator-takes-possession-of-silicon-valley-bank/) of the lender’s deposits, a Friday press statement from the Federal Deposit Insurance Corporation shows. 1/ 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. [second-largest collapse](https://www.reuters.com/business/finance/global-markets-banks-wrapup-1-2023-03-10/) of a US financial institution in history.

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.

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.

The two biggest cryptocurrency exchanges, Binance and Coinbase, have revealed that they would temporarily suspend USDC conversions on their platforms.

Its stock is down 87% in two days due to the crash and has been placed into FDIC receivership. It added in a statement on Twitter that Silicon Valley Bank was one of six banks it uses to manage 25% of USDC reserves. Unsurprisingly the crypto market has reacted to the news with investors removing their assets from USDC. At the time, Binance cited improving liquidity for users, and it is unknown if this latest development could lead to permanently delisting the stablecoin. Citing current market conditions, the exchange added that it was a standard risk-management procedure while monitoring the market situation. The two biggest cryptocurrency exchanges, Binance and Coinbase, have revealed that they would temporarily suspend USDC conversions on their platforms.

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

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.

The depegging of the USDC stablecoin has affected other stablecoins, wreaking havoc on crypto projects and stakeholders in a massive chain reaction.

In an update, KyberSwap, the decentralized exchange responsible for facilitating the swap, ](https://cointelegraph.com/news/usdc-investor-shells-out-2m-to-receive-0-05-usdt-trying-to-evade-crash) [said](https://twitter.com/KyberNetwork/status/1634524632220057600) it was “assisting with funds recovery” and is in touch with the user regarding the issue. [filed an emergency protocol](https://cointelegraph.com/news/maker-dao-files-emergency-proposal-addressing-3-1b-usdc-exposure) [ on March 11 that, among many items, called for restrictions on minting DAI using USDC to prevent panic selling. Curve Finance, a popular DeFi protocol for trading stablecoins, reported a historic all-time high daily trading volume of $5.67 billion due to the events. Du Jun, the co-founder of cryptocurrency exchange Huobi Global, [posted](https://twitter.com/DujunX/status/1634460694610608128): Subsequently, crypto projects incorporating DAI in their tokenomics also ](https://cointelegraph.com/news/maker-dao-files-emergency-proposal-addressing-3-1b-usdc-exposure) [suffered losses due to a chain reaction](https://cointelegraph.com/news/aavegotchi-bonding-curve-closes-on-exact-day-of-dai-depeg). A few other platforms simply could not handle the sheer volume of trade requests relating to USDC. At the time of publication, 82 million USDC is worth $75.26 million. Asked a few crypto veterans; losses amounted to >$1 billion in stock and deposits, myself included. [USDT](https://cointelegraph.com/tether-price-index)) after paying over 2.08 million USDC in a swap that [resulted in a permanent loss](https://cointelegraph.com/news/usdc-investor-shells-out-2m-to-receive-0-05-usdt-trying-to-evade-crash) [. [commented](https://twitter.com/ASvanevik/status/1634558951537909761) that Circle and USDC “can make it.“ However, Svanevik also warned that Circle requires “top-class execution over the next few days,” such as “flawless redemptions,“ and no calls for “bailouts publicity.“ In another tweet, Svanevik also revealed that a user moved 25 million USDC from their PulseX sacrifice wallet and exchanged it for DAI. [reportedly](https://twitter.com/PeckShieldAlert/status/1634461007803461632) withdrew 82 million USDC from the decentralized finance (DeFi) protocol, Aave v2, over a series of transactions and swapped from Dai ( [DAI](https://cointelegraph.com/dai-price-index)). “[I] dodged, LUNA, dodged 3AC, even dodged FTX [and their collapse], but I couldn’t avoid Silvergate, nor SVB and USDC.

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.

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.

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

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