Don’t Panic: ‘Circle Will Stand Behind USDC and Cover Any Shortfall’

Circle has issued a statement regarding USDC and the depegging of the stablecoin following the collapse of Silicon Valley Bank (SVB).

If 100% of the $3.3 billion that Circle held at SVB at the end of business on Friday is not returned, Circle promises that “as required by law under stored-value money transmission regulation, [we] will stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary.”

The USDC stablecoin has plunged to as low as $0.87 over the last 24 hours as fears of under-collateralization have infected the market.

This is a developing story.

Source: https://blockworks.co/news/circle-stand-behind-usdc