Circle said normal operations will resume when US banks reopen on Monday, and stablecoins like USDC will still be able to be traded 1:1 against the US dollar. After a Silicon Valley bank shut down and held $3.3 billion in corporate reserves.
Circle said it needed to cover the problems caused by the SVB failure and would seek outside funding if needed.
USDC slipped a peg after SVB collapsed and tumbled to as low as $0.88, with $3.3 billion in reserves in the failing bank. Because regulators haveturn off SVB
Before the Silicon Valley bank collapse, Circle held $5.4 billion in USDC reserves with BNY Mellon, while another $1 billion in cash reserves was held in Customers Bank. Circle also had transaction and payment accounts for USDC. at Signature Bank
SVB’s failure sent shockwaves to the crypto markets and the tech industry, with both Coinbase and Binance temporarily halting conversions between USDC and the US dollar. Until banks resume operations on Monday.
refer : LINK
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