According to its latest announcement, Circle confirmed that it will get back all of the $3.3 billion stuck at Silicon Valley Bank over the weekend, thanks to which stablecoin USDC has recovered to near the $1 mark.
The official announcement from Circle was shared by CEO Jeremy Allaire on his Twitter.
Circle’s USDC operations will open for business on Monday morning, including with new automated settlement via our new partnership with Cross River Bank. https://t.co/ybkSEedzrC
— Jeremy Allaire (@jerallaire) March 13, 2023
“USDC deposits and withdrawals will resume Monday morning through our new partnership with Cross River Bank.”
Circle confirmed, $3.3 billion of reserves at Silicon Valley Bank (or about 8% of the total reserve for USDC supply) will be able to be withdrawn when the US bank reopens. At the same time, Circle confirmed that no cash reserves are being kept at Signature Bank – the bank has just been ordered by the authorities to close because of similar risks.
>> See also: The “crypto-friendly” Signature Bank was forced to close by the US government
As mentioned above, Circle will announce its new USDC deposit and withdrawal banking partner, Cross River Bank. This cooperation will take effect on March 13, 2023. CEO Jeremy Allaire shared:
“Trust, safety, and 1:1 guaranty for USDC are core elements of Circle, even as we face crises affecting the crypto market. We are grateful to see the US government and financial authorities taking important steps to reduce risks to the banking industry. We have always advocated a fully securitized platform for cryptocurrencies and made the market immune to the effects and risks of partial bank reserves.”
Earlier on March 11, the crypto community was shocked by the news that USDC was still stuck with $3.3 billion in cash at Silicon Valley Bank, leading to stablecoin USDC losing its peg and sometimes falling to $0.88. .
> See more: Stablecoin USDC depeg heavy because of influence from Silicon Valley Bank case
However, before the commitment to compensate for liquidity loss if any from Circle and the announcement about getting back $ 3.3 billion at Silicon Valley Bank, the USDC price quickly returned to the $ 1 mark.
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