As reported by The Wall Street Journal, USD Coin, a cryptocurrency considered “stable” because it is theoretically pegged to the dollar, fell in value after its management company revealed that it held $3.3 billion in the failed Silicon Valley Bank (SVB).
Scared investors took in more than $2 billion from USDC, according to the publication. The authors warn that breaking the dollar peg could send shockwaves through the crypto world, which is still reeling from the collapse of crypto exchange FTX.
Circle said it was unable to withdraw all of its deposits with Silicon Valley Bank (SVB), the failed California bank that the US deposit insurance agency, FDIC, took over on Friday. .
Additionally, the company clarified on its Twitter account that $3.3 billion of its assets are still in the SVB treasury, unavailable. FIDC only guarantees deposits up to $250,000 per customer at each bank. On Friday, it said it would issue a certificate to depositors whose assets exceeded that amount. certificates.
“Silicon Valley Bank is one of six banking partners that Circle uses to manage approximately 25% of USDC reserves held in cash. and USDC continue to work as usual,” the company said in a statement.
