As reported yesterday, the USDC stablecoin lost its peg after issuer Circle revealed that $3.3 billion of its reserves were stuck in the failed Silicon Valley Bank (SVB), which the FDIC took control of Friday. Circle says the stablecoin is still redeemable one for one for fiat dollars and provided an update. Today Treasury Secretary Janet Yellen said SVB would not be bailed out. However, according to Bloomberg, a bidding process to acquire the bank ends today.
On Saturday, Circle said that issuance and redemption of its USDC stablecoin would resume as normal on Monday when banks open, and it remains redeemable one for one with fiat dollars.
The stablecoin price has recovered significantly, standing above 96 cents to the dollar after it fell as low as 87.6 cents in the early hours of Saturday morning.
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