USDC issuer Circle said it will resume normal operations Monday and that USDC will remain redeemable one-for-one with the U.S. dollar after Silicon Valley Bank collapsed.
Circle said that in the event Silicon Valley Bank does not return in some fashion, it is required by law and will stand behind USDC and cover any shortfall using corporate resources. It will seek external capital if necessary, Circle said.
USDC lost its peg shortly after Silicon Valley Bank collapsed and dropped to as low as $0.88. The company held $3.3 billion of its reserves behind the stablecoin in the failed bank, which is popular among tech firms.
USDC has rebounded to $0.97, according to CoinGecko.
Regulators closed Silicon Valley Bank on Friday and the Federal Deposit Insurance Corporation stepped in as the bank’s receiver.
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Source: https://www.theblock.co/post/219075/usdc-will-remain-redeemable-1-for-1-with-u-s-dollar-circle-says?utm_source=rss&utm_medium=rss