17 days ago 2 min read

After Repeg, Circle Issued New $407.8M in USDC

circle-stablecoin-bankruptcy-svb-bny mellon

Circle, a stablecoin mint, produced an additional $407.8 million USDC. The net change has increased to $463.8 million because to this week's greatest minting.

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. The runaway from USDC has been stronger as a result of this amount, which is significantly larger than the expected $1 billion. 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.

Bank closures account for the majority of the cause. Thus, $USDC can be equated to an asset with no inherent worth other than people's faith in Circle on non-business days.

Selling USDC on centralized and decentralized exchanges is the sole alternative, which would interfere with price fixing. Again, thanks to your confidence and the arbitrageurs, USDC remains stable on non-business days.

Additionally, the government's actions spare depositors from worrying that they would lose access to their money if banks run into distress due to their tax obligations.

The Fed said today that it will support other banks and custodians with $25 billion. This reduces financial system stress, fosters economic stability, and lessens any negative effects on firms, individuals, taxpayers, and the economy.

Circle previously expressed its satisfaction with the US government's and financial authorities' important actions to reduce the risks associated with certain aspects of the banking system.

At SVB, a 100% deposit is secure. The remaining SVB money will be sent to BNY Mellon, and the 100% USDC reserve is safe and secure. When banks open on Monday, USDC trading will restart.

Today's bitcoin market has also resumed activity as a result of these encouraging signs, and green books are overflowing.

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