Journey to hell and back for the crypto USD Coin (USDC)

In fact, the US dollar itself is not exchangeable on the blockchain, but it is possible to create tokens that have the exact same value as the dollar and are exchangeable on the blockchain. These special cryptocurrencies are called stablecoins.

Timeline of Usd-coin

Circle's stablecoin USD Coin (USDC) was regaining its $1 peg, at press time. This followed after CEO Jeremy Allaire confirmed that its reserves were secure and that the company had new banking partners lined up for banking beginning Monday morning.

The collapse of Silicon Valley Bank (SVB) on March 10 has caused ripples in the crypto industry, leaving many investors anxious about the exposure of major players like Circle, the issuer of the popular stablecoin USDC. With $3.

Circle, a leading player in the crypto industry, has been impacted by the recent failures of Silicon Valley Bank and Signature Bank. The collapse of Signature Bank, a critical financial institution for the industry, has left a major hole in the industry's backend infrastructure.

On March 11th, Silicon Valley Bank (SVB), the bank that held $3.3 billion of USDC reserves, was shut down by the California Department of Financial Protection. This led to a drop in the price of the stablecoin below its $1 peg, with it trading as low as $0.87.

Jeremy Allaire, CEO and co-founder of Circle, on Sunday thanked the U.S. government and financial regulators for their decisive action to address the risks associated with the fractional banking system.  What Happened: Circle's USD Coin (CRYPTO: USDC) is climbing back to its $1 peg, following confirmation from its CEO Allaire, that its “USD reserves remain safe” and the firm has new banking partner Cross River Bank (NASDAQ: CSRVF).

The financial sector has endured a few chaotic days. In particular, for USDC stablecoin and Silicon Valley Bank and its stakeholders, since the lender swung from being presumed robust and profitable to being shut down by authorities in less than 48 hours.

The stablecoin USDC has nearly regained parity with the U.S. dollar after rising just above $0.99 on March 12, 2023, at 7:20 p.m. Eastern Time. The stablecoin jumped back to the $0.99 range after the U.S. Federal Reserve revealed it would bail out depositors of California's Silicon Valley Bank (SVB) and New York's Signature Bank.

Circle Internet Financial's $3.3 billion cash reserves problem was seemingly solved Sunday when federal regulators promised that depositors of failed Silicon Valley Bank would be made whole in short order. But Circle's USDC stablecoin isn't out of the woods.

On Sunday (March 12), the crypto market had a great to reason to cheer after U.S. Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg released a hugely important joint statement.

Ripple (XRP) dips along with other altcoins, after the USDC stablecoin takes a massive hit and de-pegged from its $1 price value.  Ripple's CTO expresses serious concerns over the downfall of SVB, while announcing that Ripple will issue a statement concerning its exposure to the bank.