Circle announced the automatic minting and redemption of USDC for customers through Cross River Bank after weathering the USDC reserve risk problem at the defunct Silicon Valley Bank.
Following the announcement made jointly by US prudential authorities and Treasury Secretary Janet Yellen, all depositors at Silicon Valley Bank and Signature Bank, which were shut down by regulators today, will be paid.
Silicon Valley Bank's $3.3 billion USDC reserve deposit, or around 8% of the entire USDC reserve, will be fully accessible when American banks open tomorrow morning. There were no USDC cash reserves at Signature Bank.
After revealing it has a $3.3 billion exposure to the failed bank, USDC was the stablecoin severely hurt by Silicon Valley Bank's bankruptcy last week. Given that it is significantly greater than the expected $1 billion, the USDC is being strongly resisted. At one point, USDC's peg was $0.93, which was the lowest point in its existence.
After numerous positive market movements, stablecoin USDC has now restored its peg levels.
Cross River Bank was chosen by Circle as its new partner for the automatic minting and redemption of USDC for consumers beginning today, it was also mentioned in the release. The transfer of USDC to BNY Mellon is another example of extended partnerships.
Circle, a stablecoin mint, produced an additional $407.8 million USDC. The net change now stands at $463.8 million after this week's highest minting.
To increase customer confidence, the Circle provided information regarding the USDC reserve on March 11, 2023, noting that it is currently 77% collateralized, or roughly $32.4 billion, in short-term US Treasury bills.
The most liquid asset in the world is US Treasury bills, which are a direct debt of the US government. BNY Mellon is in charge of holding these reserves, and BlackRock actively manages the liquidity and assets.