Earlier in March, the stablecoin temporarily lost its peg to the US dollar. The reason was that Circle announced the placement of $ 3.3 billion – 8% of stablecoin reserves – in the bankrupt Silicon Valley Bank (SVB).
On March 13, Circle announced the removal of the risk of loss of assets in SVB. On the same day, the company opened access to assets for users.
“At the close of U.S. banking operations on Wednesday, March 15, we have eliminated virtually all backlogs of USDC issuance and redemption requests,” the company wrote.
The company acknowledges that the events of the past week have affected USDC liquidity operations.
“Circle has been working tirelessly to re-launch services with alternative banking partners, in particular US dollar payment and redemption services,” the company said.
Earlier it was reported that investors in USDC withdrew almost $1.74 billion amid the crisis. This is more than 2% of USDC working capital.
Source: Bits
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