Crypto News: As more information about the tragic weekend of the USDC depeg continues to surface, the newest development in the wake of the failure of Silicon Valley Bank is the introduction of a credit line with a value in the multi-billion dollar range. It has been reported that Coinbase made a massive offer of $3 billion to Circle, the crypto company that issues the second-largest stablecoin in the world, USD Coin (USDC), in a bid to bring it back to its $1 peg.
Coinbase Allegedly Offered $3B Backstop
As the stablecoin lost its peg to the U.S. Dollar the previous week, Circle reportedly requested an emergency credit line in order to secure the continued stability of USDC — according to a report published by Fortune. The de-pegging event took place after Circle disclosed a $3.3 billion exposure to Silicon Valley Bank not long after the financial institution was taken over by the Federal Deposit Insurance Corporation (FDIC).
Read More: Top Crypto Projects With Upcoming Upgrades You Should Be Aware Of In 2023
According to reports, Coinbase had provided an emergency line of credit to Circle that would have guaranteed to cover the entire liquidity for USDC reserves and assured the stablecoin could be converted to U.S. dollars on Monday morning following Silicon Valley Bank’s failure. The companies were almost certain of revealing the credit facility, but on the same Sunday, banking authorities lifted the FDIC and alleviated the sense of trouble.
The USDC Depegging Fiasco
As reported earlier on CoinGape, Circle had planned transactions to move its deposits out of Silicon Valley Bank barely days before the regulatory authority ordered the bank to close its doors. The announcement that SVB was going to be defunct and Circle had cash that was stranded prompted considerable FUD among investors, who then hurried to withdraw their funds from the stablecoin.
Recommended Articles
As a direct consequence of this event, USDC de-pegged from the US Dollar, and for a short period of time, the stablecoin traded at a price lower than 90 cents. As things currently stand, the price of USDC is exchanging hands at its $1 peg with a market cap of $35 billion.
Also Read: Polygon Launches zkEVM-powered Web3 Gaming Network; MATIC Price Surge Ahead?
- Dogwifhat (WIF) Price Jumps 21% On Way To Hit New All-Time High
- $2.3B Crypto VC Investment Falls Short Of Bitcoin Price Surge, Here’s Why
- Shiba Inu Coin: SHIB Price Rallies As Burn Rate Soars 1000%, What’s Next?
- Sui Network Tokenomics Raises Concerns With 84% Control of the Founders
- Will Bitcoin Hit $70,000 again? Here’s What You Need to Know
- Coinbase Stock Price Prediction: End-Of-Correction Pattern Hints Major Reversal Above $250
- 2 Under $5 Crypto To Buy As Bitcoin Price Aims $80,000
- Dogwifhat Price Analysis: Is WIF Going To $10 In May?
- XRP Price Prediction: XRP Eyes Major Reversal as Buyers Step In at $0.48
- LUNC Price Prediction: Terra Classic On The Verge Of 66% Move?
Mallconomy 
WienerAI 
