Stablecoin USDC is almost recovering after collapse thanks to help

Stablecoin USDC is almost recovering after collapse thanks to help from US regulators

Stablecoin USD Coin (USDC) lost its peg to the US dollar late last week following news of the collapse of the Silicon Valley Bank (SVB) — the institution that held $3.3 billion in reserves for this cryptocurrency is almost recovered amid reports from Circle Internet Financial, the issuer of USDC, that this reserve will be on Monday “fully available”.

    Image source: Pixabay

Image source: Pixabay

Last Sunday, the US Treasury Department, the Federal Reserve and the US Federal Deposit Insurance Corporation announced that starting Monday, all SVB depositors will have access to money held at the bank.

According to CoinDesk, USDC is already on the verge of recovering to $1. On Monday, the price fluctuated slightly below this level at around $0.99 levels. After the intervention of the regulators, the cryptocurrency market also grew. For example, Bitcoin surged more than 14% and surpassed $24,000.

USDC is the second largest stablecoin after Tether. Its market cap was about $42 billion before last week’s crash. It is backed by real assets, including US Treasuries and cash. Circle said it has about $9.7 billion in total cash as part of its reserve. Of that, $5.4 billion is now held by investment firm BNY Mellon.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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