Silicon Valley Bank’s sudden collapse has impacted the value of the world’s fifth-largest cryptocurrency, raising concerns among Web3 companies over possible spillovers. On Saturday morning, Circle, the company that manages the stablecoin, Of the approximately $10 billion in cash reserves backing USDC, $3.3 billion was held by SVB.
As , is an unprecedented decline. As a stablecoin, USDC’s value is considered stable thanks to its peg to the US dollar.according to , USDC’s previous all-time low was around $0.97 in 2018. These days, the currency is . At the time of this writing, USDC is worth about 0.95 cents.
Previously, USDC claimed that it only lost pegs on less deep exchanges (Kraken, Gemini).
Now it’s down everywhere. I think it’s going to be a rough weekend. pic.twitter.com/4BCW6Lael9
— Molly White @ SXSW (@molly0xFFF) March 11, 2023
Creator Molly White suggests that the impact of a sustained USDC decline could be: Several other stablecoins, such as FRAX and DAI, use USDC as collateral.friday, circle While we wait for more information about what happens to SVB’s clients, “it will continue to work as usual.” “As of Thursday, we began transferring these funds to other banking partners. While these transfers were still pending as of the close of business on Friday, we are confident in the FDIC’s management of the SVB situation. and are ready to receive these funds,” Circle said on Saturday, adding that $5.4 billion in cash assets are held by BNY Mellon, “one of the world’s largest and most stable financial institutions.” He added that there are.
