Circle assures market after stablecoin USDC breaks dollar peg

LONDON, March 11 (Reuters) – Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday before recovering most of its losses after Circle, the firm behind it, assured investors it would honor the peg despite exposure to failed Silicon Valley Bank.

Circle said in a tweet on Friday it has $3.3 billion of its $40 billion of USDC reserves at Silicon Valley Bank. On Saturday, the cryptocurrency company said in a blog post that USDC liquidity operations will resume as normal when banks open on Monday morning in the United States.

“As a regulated payment token, USDC will remain redeemable 1 for 1 with the U.S. Dollar”, the company said in a blog post.

The cryptocurrency firm said that in the event the bank does not return 100% of deposits, it will cover any shortfall using corporate resources, involving external capital if necessary.

The coin, which broke its 1:1 dollar peg and fell…

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