USDC

After Circle disclosed how much of its USDC stablecoin is backed by reserves held by Silicon Valley Bank, exchanges show caution signs.

“Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. Finally, late on Friday night, Circle disclosed that $3.3 billion worth of the cash backing USDC remains locked in Silicon Valley Bank. (USDC was originally launched by Centre, a joint venture between Coinbase and Circle) [tweeted](https://twitter.com/circle/status/1634391708837330945?s=20). The firm said Silicon Valley Bank is one of six banks Circle uses for managing 25% of USDC reserves. Top cryptocurrency exchanges Binance and Coinbase both said on Friday night that they would temporarily suspend USDC conversions as the contagion from the collapse of

USDC lost 3% of its value as it traded at $0.969, while on-chain data further reveals that Circle redeemed a net of $1.4 billion in USDC in 8 hours.

During the timeline, Circle’s chief financial officer Jeremy Fox-Geen had shared their intent to go public but planned on waiting for better market conditions. At the time of writing, USDC lost 3% of its value as it traded at $0.969. 2/ Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. However, two days later, on March 11, Circle confirmed that the wire transfers were not completely processed and that $3.3 billion of the USDC reserves was still with SVB. In an effort to reduce exposure, crypto companies including Coinbase and Jump Trading redeemed approximately $850 million and upto $138 million in USDC. “As with Silvergate, our teams have worked at speed to limit any exposure to banks.

Circle Internet Financial's USDC stablecoin, which is the second-largest stablecoin at $42 billion of market cap, depegged from the U.S. dollar as contagion ...

Circle earlier confirmed it has $3.3 billion backing its USDC stablecoin parked at now-shuttered Silicon Valley Bank.

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. The fate of that cash is now uncertain, with Silicon Valley Bank having been seized by the FDIC, and USDC – for the moment – [has lost its dollar peg](https://www.coindesk.com/markets/2023/03/11/usdc-stablecoin-depegs-from-1-circle-says-operations-are-normal/). [strict set of editorial policies](/ethics/). "Silicon Valley Bank is a critical bank in the U.S. Speculating on the stability of USDC, traders redeemed $1.6 billion of USDC, lowering its total supply.

Following the collapse of SVB, withdrawals from USDC mounted, with the crypto intelligence platform Nansen showing over $1 billion in redemptions from the ...

Coinbase [worked](https://www.coinbase.com/blog/coinbase-and-circle-announce-the-launch-of-usdc-a-digital-dollar) with Circle to create USDC, launching the token in 2018. The firm is a fundamental cog in the crypto ecosystem, with USDC serving as a crucial on-ramp into crypto for investors globally. After the FDIC placed SVB into receivership on Friday, the weekend will prove an uncertain time as the financial world waits to see if the U.S. government is able to find a buyer for the failed bank or will otherwise backstop losses, with insured deposits only backed up to $250,000. Following the collapse of SVB, withdrawals from USDC mounted, with the crypto intelligence platform Nansen [showing](https://www.coindesk.com/markets/2023/03/11/circles-usdc-endured-1b-of-net-redemptions-since-silicon-valley-banks-shutdown/) over $1 billion in redemptions from the stablecoin since SVB’s shutdown. [revealed](https://www.circle.com/hubfs/USDCAttestationReports/2023%20USDC_Circle%20Examination%20Report%20January%202023.pdf) that part of its $9.88 billion in cash reserves was held at SVB, although it did not disclose the total amount. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.— Circle (@circle) [@SVB_Financial]is a critical bank in the U.S. [@circle]is currently protecting [#USDC]from a black swan failure in the U.S. [seems to be safe](https://fortune.com/crypto/2023/03/10/silicon-valley-bank-crypto-investors-silvergate/) from SVB contagion for now, with much of the sector moving to [Signature Bank](https://fortune.com/company/signature-bank/) and other partners in the wake of Wednesday’s [voluntary liquidation](https://fortune.com/crypto/2023/03/08/cryptos-favorite-bank-falls-as-silvergate-announces-plans-to-wind-down-operations/) of Silvergate, Circle could prove the exception. [trading](https://twitter.com/tier10k/status/1634398977712947201) at $0.92 against tether on Kraken as of 10:40 pm ET. [announced](https://twitter.com/binance/status/1634361554543030273) it would be temporarily suspending its [auto-conversion policy](https://fortune.com/crypto/2023/02/22/binance-stablecoin-cash-grab-customers-funds/) of USDC to its BUSD stablecoin, citing “market conditions” and describing the action as a “normal risk-management procedural step.”

While the crypto market responded with a massive sell-off, not all USDC investors were lucky enough to walk away with their funds amid the uncertainty.

He explained the nuances that eventually led to a maximal extractable value (MEV) bot netting $2.045 million in profit after paying $45 in gas and $39,000 in MEV bribes. On-chain investigations revealed that the user had stored the assets in a liquidity pool (LP) — a popular method to earn passive income in cryptocurrencies. [Silicon Valley Bank did not transfer $3.3 billion](https://cointelegraph.com/news/circle-discloses-3-3b-tied-up-at-silicon-valley-bank) of its USD Coin ( [USDC](https://cointelegraph.com/usdc-price-index)) reserves, the market responded with a massive sell-off — [depegging the stablecoin](https://cointelegraph.com/news/usdc-depegs-as-circle-confirms-3-3b-stuck-with-silicon-valley-bank) from the U.S. The user could have sold his LP tokens for USDT for a 6% slippage. Not all of them are going to make it there in one piece, however.— BowTiedPickle.eth With USDC insolvency fears rampant, users are fleeing to safety in other stables.

USD Coin [USDC], lost its dollar-peg on some exchanges, over concerns that reserves backing the second-largest stablecoin by market cap...

It should be noted here that USDC became the latest victim of the stablecoin family. During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to re-commence conversions. [Binance](https://twitter.com/binance/status/1634361554543030273?s=20), the world’s largest cryptocurrency exchange, followed suit and announced the suspension of USDC to BUSD conversions due to ‘current market conditions’. Thus, triggering significant FUD about the state of its reserves. [Nansen](https://twitter.com/nansen_ai/status/1634384740886396930?s=20), Circle burned $2.34 billion worth of USDC in the last 24 hours, as jittery investors rushed to redeem dollars for their falling USDC.

Other popular cryptocurrencies, such as Tether (USDT) and Binance USD (BUSD), continue to maintain a 1:1 peg with the US dollar.

[DAI](https://cointelegraph.com/dai-price-index)), a stablecoin issued by MakerDAO, lost 7.4% of its value due to USDC’s depegging. [USDC](https://cointelegraph.com/usdc-price-index)) depegged from the U.S. dollar due to a [subsequent sell-off](https://cointelegraph.com/news/usdc-depegs-as-circle-confirms-3-3b-stuck-with-silicon-valley-bank) after Silicon Valley Bank (SVB) [did not process](https://cointelegraph.com/news/circle-discloses-3-3b-tied-up-at-silicon-valley-bank) $3.3 billion of Circle’s $40 million transfer request. SVB was shut down by the California Department of Financial Protection and Innovation for undisclosed reasons. USDD responded to the USDC sell-off with a nearly 7.5% drop to trade at $0.925, while FRAX dipped even further to $0.885. As a result, DAI depegged from the dollar to momentarily touch $0.897.

Volatility is expected to continue throughout the weekend as panic sets in after the Silicon Valley Bank collapse. The failure of SVB is hurting the reserve ...

Ket to that will be if a buyer of the bank can be found. [Peter Thiel's Founders Fund advised depositors to get out](https://www.bloomberg.com/news/articles/2023-03-11/thiel-s-founders-fund-withdrew-millions-from-silicon-valley-bank), which was the nail in the coffin for SVB – bank runs are hard to stop. The transaction ended up costing $2,080,468.85 to receive $0.05 of USDT: DAI is the fourth-largest stablecoin. The Fed putting up interest rates means the value of bonds falls, because bond yields and price have an inverse relationship. This is common practice in the fractional banking model that underpins modern banking. Traders and crypto firms reacted to the news of USDC reserve exposure to SVB by exiting their positions in the stablecoin and moving into USDC has $3.3 billion tied up at SVB. USDC and DAI in trouble – which of the top stablecoins are at risk? USDC is the second-largest stablecoin in the crypto ecosystem and is an essential part of the industry's plumbing. [FDIC the receiver](https://www.fdic.gov/news/press-releases/2023/pr23016.html) – after depositors initiated a run on the bank by trying to withdraw as much as $45 billion on Thursday. The failure of SVB is hurting the reserve position of

San Francisco: In a shock for crypto investors, top cryptocurrency exchanges Binance and Coinbase on Saturday temporarily suspended USDC stablecoin.

When banks open on Monday, we plan to re-commence conversions,” it added. A Circle spokesperson said that “Silicon Valley Bank is one of six banking partners Circle uses for managing the approximately 25 per cent portion of USDC reserves held in cash”. SVB’s collapse has sent shockwaves across the tech industry.

Some $4 million in USDC futures were liquidated in the past 24 hours, Coinglass data shows.

[ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [strict set of editorial policies](/ethics/). As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of [stock appreciation rights](https://www.investopedia.com/terms/s/sar.asp), which vest over a multi-year period. The funding was paid by traders who shorted USDC, paying over 0.4% to borrow the asset and bet on lower prices. Leverage could potentially magnify returns for traders betting on a recovery.

USDC, the stablecoin tracing the USD, is under immense pressure as users rush to convert to other assets, including BUSD by Paxos and USDT by Tether ...

During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. The Each USDC token, it should be noted, is backed 1:1 with cash, and redemption means every backing cash or cash equivalent from Circle must be sold and disbursed to the client. The loss will likely be covered by interest payments from treasuries, where most of Circle’s assets are held in. What’s on the table currently is USDC by Circle. [trading](https://coinmarketcap.com/currencies/usd-coin/) at $0.90 to the USD at the time of writing on March 11.

LONDON, March 11 (Reuters) - By Elizabeth Howcroft and Rishabh Jaiswal. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the U.S. bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors. USDC's price usually holds close to $1, making Saturday's drop unprecedented. It recovered slightly to trade around $0.90 by 1120 GMT.

The two biggest cryptocurrency exchanges, Binance and Coinbase, have revealed that they would temporarily suspend USDC conversions on their platforms.

Its stock is down 87% in two days due to the crash and has been placed into FDIC receivership. It added in a statement on Twitter that Silicon Valley Bank was one of six banks it uses to manage 25% of USDC reserves. Unsurprisingly the crypto market has reacted to the news with investors removing their assets from USDC. At the time, Binance cited improving liquidity for users, and it is unknown if this latest development could lead to permanently delisting the stablecoin. Citing current market conditions, the exchange added that it was a standard risk-management procedure while monitoring the market situation. The two biggest cryptocurrency exchanges, Binance and Coinbase, have revealed that they would temporarily suspend USDC conversions on their platforms.

Issuer Circle Internet Financial said it held a chunk of its reserves at the failed bank, while the token's price fell below a dollar.

[said](https://twitter.com/circle/status/1634391505988206592) $3.3 billion of its token’s $40 billion in reserves were at the bank, which regulators [shut down](https://www.barrons.com/articles/svb-financial-stock-portfolio-outlook-loss-93287f3d?mod=hp_LEAD_1&mod=article_inline) earlier in the day. One of the most important underpinnings of the cryptocurrency market appears to be on shaky ground, as stablecoin issuer Circle Internet Financial disclosed that a significant portion of its reserves are locked up at the failed Silicon Valley Bank and the token struggled to maintain its dollar peg. Stablecoin USDC, Part of Crypto’s Bedrock, Is Caught in Failed Silicon Valley Bank

The U.S. cryptocurrency firm Circle's USD Coin lost its dollar peg and fell to a record low Saturday morning.

banking failure](https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html) since the 2008 financial crisis. The company's spectacular implosion began late Wednesday when it surprised investors with news that it needed to raise [$2.25 billion](https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html) to shore up its balance sheet. [shuttered](https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html) SVB Friday and seized its deposits in what has become the [largest U.S. In a tweet Friday, Circle said it has $3.3 billion in remaining reserves at SVB. USDC is designed to trade at $1, but it fell below 87 cents on Saturday, according to data from CoinDesk. The U.S.

The depegging of the USDC stablecoin has affected other stablecoins, wreaking havoc on crypto projects and stakeholders in a massive chain reaction.

In an update, KyberSwap, the decentralized exchange responsible for facilitating the swap, ](https://cointelegraph.com/news/usdc-investor-shells-out-2m-to-receive-0-05-usdt-trying-to-evade-crash) [said](https://twitter.com/KyberNetwork/status/1634524632220057600) it was “assisting with funds recovery” and is in touch with the user regarding the issue. [filed an emergency protocol](https://cointelegraph.com/news/maker-dao-files-emergency-proposal-addressing-3-1b-usdc-exposure) [ on March 11 that, among many items, called for restrictions on minting DAI using USDC to prevent panic selling. Curve Finance, a popular DeFi protocol for trading stablecoins, reported a historic all-time high daily trading volume of $5.67 billion due to the events. Du Jun, the co-founder of cryptocurrency exchange Huobi Global, [posted](https://twitter.com/DujunX/status/1634460694610608128): Subsequently, crypto projects incorporating DAI in their tokenomics also ](https://cointelegraph.com/news/maker-dao-files-emergency-proposal-addressing-3-1b-usdc-exposure) [suffered losses due to a chain reaction](https://cointelegraph.com/news/aavegotchi-bonding-curve-closes-on-exact-day-of-dai-depeg). A few other platforms simply could not handle the sheer volume of trade requests relating to USDC. At the time of publication, 82 million USDC is worth $75.26 million. Asked a few crypto veterans; losses amounted to >$1 billion in stock and deposits, myself included. [USDT](https://cointelegraph.com/tether-price-index)) after paying over 2.08 million USDC in a swap that [resulted in a permanent loss](https://cointelegraph.com/news/usdc-investor-shells-out-2m-to-receive-0-05-usdt-trying-to-evade-crash) [. [commented](https://twitter.com/ASvanevik/status/1634558951537909761) that Circle and USDC “can make it.“ However, Svanevik also warned that Circle requires “top-class execution over the next few days,” such as “flawless redemptions,“ and no calls for “bailouts publicity.“ In another tweet, Svanevik also revealed that a user moved 25 million USDC from their PulseX sacrifice wallet and exchanged it for DAI. [reportedly](https://twitter.com/PeckShieldAlert/status/1634461007803461632) withdrew 82 million USDC from the decentralized finance (DeFi) protocol, Aave v2, over a series of transactions and swapped from Dai ( [DAI](https://cointelegraph.com/dai-price-index)). “[I] dodged, LUNA, dodged 3AC, even dodged FTX [and their collapse], but I couldn’t avoid Silvergate, nor SVB and USDC.

Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the US firm behind the coin, revealed some of the ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. USDC’s price usually holds close to $1, making Saturday’s drop unprecedented. It recovered slightly to trade around $0.90. [tweet](https://twitter.com/circle/status/1634341007306248199) Friday it and USDC “continue to operate normally” while the firm waits for clarity on what will happen to Silicon Valley Bank depositors. [collapsed lender Silicon Valley Bank](http://www.cnn.com/2023/03/11/business/svb-collapse-roundup-takeaways/index.html), the company said in a [tweet](https://twitter.com/circle/status/1634391505988206592) Friday.

Circle says $3.3 billion of the cash reserves backing USDC remain at shuttered Silicon Valley Bank. USDC, DAI, and USDD have all depegged.

[revealed their exposure to SVB](https://decrypt.co/123199/silicon-valley-bank-crypto-companies-contagion), including BlockFi, Circle, Avalanche, Proof, and Yuga Labs. DAI is at 93 cents as of Saturday morning, USDD is at 95 cents, and USDP is at 96 cents. Dollar-pegged stablecoins are designed to be "stable" in that they keep a constant price of $1. That means customers with USDC held on those exchanges cannot get it out or convert it to something else, and are nervously waiting to hear more from Circle or see USDC regain its peg. dollars." On Saturday morning, it had begun to recover.