USDC depegs as Circle confirms $3.3B caught with Silicon Valley Financial institution

Virtually instantly after (USDC) issuer Circle revealed it couldn’t withdraw $3.3 billion of its $40 billion reserves from Silicon Valley Financial institution (SVB), the resultant sell-off triggered the value of the stablecoin to fall beneath its $1 peg.

On March 9, Circle initiated a wire switch to take away its funds from SVB because the Federal Deposit Insurance coverage Company-insured financial institution was about to close operations. Nevertheless, two days later, on March 11, Circle confirmed that the wire transfers weren’t wholly processed, with $3.3 billion of USDC reserves nonetheless with SVB.

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