Circle: We Have Solved Problems with USDC Banking Support
The USDC stablecoin rate has almost returned to its par value, as regulators and Circle, the operator of the coin, have taken action.
On March 11, the stablecoin lost its peg to the US dollar following the closure of Silicon Valley Bank (SVB) by US authorities. It had been holding $3.3 billion in reserves, around 8% of the total collateral.
Additionally, regulators have also shut down Signature Bank, a cryptocurrency-friendly institution which used to issue and redeem USDC. Circle stated that no USDC reserves were held at Signature Bank.
Jeremy Allair, co-founder and CEO of Circle, praised the actions taken by the authorities as a way to lower the risks associated with the banking system.
Regulators allowed the transfer of the company’s funds from SVB to BNY Mellon. With these measures in place, the USDC stablecoin rate has nearly returned to its original peg.
