USD Coin issuer Circle plans to use “corporate resources” to cover the shortfall on its reserves following Silicon Valley Bank’s shutdown, said the company in a statement on March 11.
According to Circle, USDC liquidity operations will “resume as normal when banks open on Monday morning in the United States,” enabling USDC redemption at 1:1 with the U.S. dollar.
The announcement came after the stablecoin lost its $1 peg on March 11 to trade as low as $0.87 before slowly re-pegging at $0.95 at the time of publication. The stablecoin lost its peg after the disclosure of $3.3 billion of Circle’s reserve at Silicon Valley Bank.
This is a developing story, and further information will be added as it becomes available.