USDC Faces De-peg after disclosing $3.3B Deposit in SVB

At the time of writing, USDC is trading around $0.99 after seeing a new all-time low of $0.87 on March 11.

Last updated: February 12, 2024 3:51 AM

Published 2023-03-13

Last updated: February 12, 2024 3:51 AM

Published 2023-03-13

After the news of the U.S.’s leading banking institution, Silicon Valley Bank’s collapse spread out, top-notch stablecoin USDC experienced a de-pegging issue and hit a new all-time low as it fell below $0.9.

The downfall momentum started after the stablecoin issuer Circle disclosed its $3.3 billion in deposits with the defunct bank, Silicon Valley Bank.

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.
— Circle (@circle) March 11, 2023

The announcement triggered a panic sale of USDC as investors started to cash out their money or liquidate with other assets like USDT.

According to CoinMarketCap, USDC is now trading around $0.99 after seeing a new all-time low of $0.87 on March 11.

USDC Depeg Chart — Source: CoinMarketCap

However, Circle has asked investors to stay calm by ensuring the safety of their funds.

As per the tweet from Circle, Silicon Valley Bank is the major partner for its holding, as the bank manages around 25% of its USDC reserves held in cash. Circle is looking forward to clarity from FDIC about how receivership will impact SVB’s depositors.

Also Read: Circle CEO says The SEC is not the Right Fit to Regulate Stablecoins

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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