Circle May Be Able To Recover All $3.3 Billion Stuck At Silicon Valley Bank

Circle CEO Jeremy Allaire has stated that his firm may be able to recover all of the $3.3 billion stuck at Silicon Valley Bank. In case the recovery is delayed, Circle will back USDC using external capital if necessary, he added.

Timeline of Usd-coin

On Saturday, March 11, 2023, Circle Financial updated the public about its stablecoin, USDC, and noted that the stablecoin's liquidity operations will resume normally on Monday morning in the United States.

Circle CEO Jeremy Allaire is speaking out for the first time following USDC‘s depeg from the dollar, which saw over $6.3 billion disappear from the second-largest stablecoin's market cap. In a new company update also posted to Twitter, Allaire says that USDC is still redeemable for dollars on a 1 for 1 basis.

Quick Take On Saturday, March 11, Circle CEO Jeremy Allaire announced that Circle pledges to cover any shortfall in the assets backing USDC if it does not receive the entirety of a $3.3 billion cash reserve held at Silicon Valley Bank.

The USDC issuer said its operations will resume as usual on Monday and that the stablecoin will remain redeemable one-for-one with the U.S. dollar after Silicon Valley Bank collapsed. 

The turmoil induced by the fall of Silicon Valley Bank has led to USDC losing its dollar peg. The stablecoin fell as low as $0.87 earlier today as holders flocked to other crypto assets.

Late Friday night, the USDC issuer Circle Internet Finance released a statement saying that it “awaits clarity” from federal banking regulators regarding the standing of its accounts at Silicon Valley Bank.

Nine of the top 10 stablecoins by market cap are trading below their dollar peg as the market reels from the contagion sparked by the depeg of Circle's USDC stablecoin on March 11, according to CryptoSlate data.

Concerns are rising within the cryptocurrency industry following the revelation that $3.3 billion of the approximately $40 billion in USDC reserves remain at Silicon Valley Bank (SVB).

USD Coin (USDC) is struggling to maintain its peg to the US dollar after revelations that some of the cash backing the top stablecoin is stuck in Silicon Valley Bank. The Boston-based firm says $3.3 billion of the $40 billion backing USDC is locked in the collapsed bank, which is now controlled by the FDIC.

On Saturday, March 11, 2023, crypto advocates are concerned as a few stablecoin assets have depegged from their $1 parity. The second-largest stablecoin USDC, issued by Circle Financial, fell below $0.90, reaching a low of $0.877 per coin. Additionally, around five other stablecoins have dropped below the U.S.