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.
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.
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.