© Reuters. FILE PHOTO: The word “Crypto” and the stock chart are seen through a magnifying glass pictured in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) – Cryptocurrency firm Circle said on Sunday that all of its depositors in the collapsed Silicon Valley Bank and signature bank (NASDAQ:) will be completed and the $3.3 billion USDC reserve deposit held at Silicon Valley Bank will be fully available when banks open Monday.
Circle’s announcement comes after the US administration stepped in on Sunday with a series of emergency measures to bolster confidence after the failure of Silicon Valley Bank and New York-based Signature Bank threatened to spark a crisis. systemic.
Circle said it had no stablecoin (USDC) cash reserves at Signature Bank and the token was still redeemable at 1:1 parity to the US dollar.
Additionally, the crypto firm announced automatic minting and redemption of USDC through Cross River Bank, starting Monday, saying its expanded relationships also include USDC redemptions through BNY Mellon (NYSE:).
“Circle’s USDC operations will be open for business, including with a new automated settlement through our new partnership with Cross River Bank,” CEO Jeremy Allaire said in a tweet.
Stablecoins are cryptocurrencies designed to maintain a constant exchange rate with “fiat” currencies, those backed by a central government rather than a physical commodity such as gold, for example through a 1:1 peg to the dollar. US. USDC is the second largest stablecoin with a market capitalization of $37 billion.
The USDC lost its peg to the dollar and fell to a record low on Saturday before recouping most of its losses as Circle assured investors it would stick to the peg despite exposure to failed Silicon Valley Bank.
