March 10, Circleissuer of USDC stablecoinannounced to have a $3.3 billion exposure on its reservations with the Silicon Valley Bank and temporarily ceased its services. Hit by the implosion just before the weekend of startup banking, this decision was made before the banks closed, leaving several transactions pending and wreaking havoc on the entire financial market as well as on the price of cryptocurrencies.
However, according to a communicated of Circle published today March 13, 2023, the USDC operations will resume from today when US banks reopen. In the press release, Circle also states:
“We are pleased to announce that USDC operations will resume beginning Monday, March 13, 2023. We have been working hard to resolve issues related to the shutdown of our peg dollar protocol. We are also convinced that we have found a solid solution to guarantee the stability of the USDC. »
It would therefore seem that a $25 billion infusion orchestrated by the FED and US regulation allow the crypto market as well as traditional finance to breathe while everyone is waiting for the opening of banks across the Atlantic.
Anyway, the crypto sphere can breathe a little, Circle will recover its reserves:
“The $3.3 billion USDC reserve deposit held at Silicon Valley Bank, or approximately 8% of the total USDC reserve, will be fully available when US banks open tomorrow morning. No USDC cash reserves were held at Signature Bank. As a regulated payment token, USDC remains redeemable 1:1 with the US dollar. »
It’s not just Circle that has been able to benefit from a boost thanks to the FED which, by defending its economy at all costs, allows the Bitcoin (BTC) price to regain some strength.
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Last Verdict
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