Supposedly 'stable' cryptocurrency USDC falls sharply after firm that created it, Circle, announced it holds $3.3 billion in failed Silicon Valley Bank
SVB is expected to reopen on Monday under a new name, with billions in customer deposits now under FDIC control.
The USD Coin, or USDC, was launched in 2018 as a "stablecoin," meaning it was indexed to a currency backed by a central bank, in this case the US dollar. Overnight Friday to Saturday, the USDC fell to its lowest level ever, dropping to 87 cents before recovering to around 94 cents. The cryptocurrency firm said that in the event SVB does not return 100 percent of deposits, it will cover any shortfall using corporate resources, involving external capital if necessary.The Dai, the fourth-largest stablecoin by volume in circulation, fell to 95 cents, while the Frax fell to 94 cents, its lowest ever.
Meantime, Binance, the largest cryptocurrency transaction site, said it was suspending conversions of USDC into BUSD — Binance USD, the platform's own "stable" currency.
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