OH NO – More Silicon Valley Bank Fallout – Goldman Sachs Backed CIRCLE’s Stable Coin ‘USDC’ No Longer Pegged to Dollar – Conversion to Dollars Halted

(Source: The Gateway Pundit)

CIRCLE crypto company is under additional duress.  Currently, trading of its stablecoin ‘USDC’ has been suspended till at least Monday and the coin is no longer pegged to the dollar. 

On Saturday it was reported that crypto company CIRCLE was at risk from the Silicon Valley Bank failure because CIRCLE had over $3 billion in assets held at the bank.

The fallout from the failure of Silicon Valley Bank reached further into crypto, unhinging a key cog in the market that’s meant to be among the safest digital assets in the space.

The second-largest stablecoin fell from its intended $1 peg, trading as low as 81.5 cents as investors reacted to the exposure of issuer Circle Internet Financial Ltd. to the collapsed bank.

USD Coin, or USDC, is an asset-backed stablecoin and a widely used plank of crypto markets. The token is intended to hold a constant $1 value, fully backed by reserves of cash and short-dated Treasuries. But late Friday, Circle disclosed that $3.3 billion of its roughly $40 billion stockpile of reserves is held with Silicon Valley Bank, which has just become one of the largest US bank failures in recent history.

Regulators seized the bank on Friday and investors are awaiting more clarity on the return of deposits. In that vacuum, USDC fell below $1, trading at about 91 cents as of 8:45 a.m. in New York. Smaller stablecoins like DAI, which is sometimes viewed as a proxy for USDC, and Pax Dollar also fell from their pegs. DAI is the fourth-largest stablecoin by circulation…

USDC had a circulating supply of around 40 billion tokens as of Saturday morning in New York, CoinGecko data shows. A net $2 billion of USDC was redeemed in the past 24 hours, according to blockchain research firm Nansen. Data compiled by Bloomberg indicated USDC traded as low as 81.5 cents.