The stablecoin USDC has nearly regained parity with the U.S. dollar after rising just above $0.99 on March 12, 2023, at 7:20 p.m. Eastern Time. The stablecoin jumped back to the $0.99 range after the U.S. Federal Reserve revealed it would bail out depositors of California’s Silicon Valley Bank (SVB) and New York’s Signature Bank. Following the Fed announcement, Circle CEO Jeremy Allaire said on Twitter that the company would rely on BNY Mellon to settle the process of minting and redemption.
Signature Bank Closure Forces Circle to Rely on BNY Mellon for USDC Minting and Redemption Settlements
At 8:45 p.m. Eastern Time on Sunday, March 12, 2023, the stablecoin usd coin (USDC) is trading at $0.998 per unit after jumping above the $0.99 range at around 7:20 p.m. Three minutes after the stablecoin returned to the $0.99 region, Circle CEO Jeremy Allaire tweeted that USDC operations would resume on Monday.
The announcement follows the U.S. Federal Reserve’s disclosure that it established a backstop entity called the Bank Term Funding Program (BTFP) to assist banks facing liquidity challenges. The central bank of the United States also stated that all depositors of Silicon Valley Bank (SVB) and Signature Bank would be fully compensated.
This means Circle Financial won’t lose funds because the bailout will make depositors whole, but Circle does lose a banking partner with Signature being shut down by New York regulators.
“We were heartened to see the U.S. government and financial regulators take crucial steps to mitigate risks extending from the fractional banking system,” Allaire said in a statement. “All deposits from SVB are 100% secure and will be available at banking open tomorrow.”
Allaire added:
100% of USDC reserves are also safe and secure, and we will complete our transfer for [the] remaining SVB cash to BNY Mellon. As previously shared, liquidity operations for USDC will resume [as] banking open[s] tomorrow morning.
The Circle CEO also commented on the Signature Bank issue, as Circle had previously used the company’s Signet service, which facilitated settlements between USDC and USD. Signature Bank’s Signet is a similar service to Silvergate Bank‘s now-defunct SEN network. “With the closure of Signature Bank announced tonight, we will not be able to process minting and redemption through Signet. We will be relying on settlements through BNY Mellon,” Allaire said in his Twitter statement.
In addition to USDC, several other top stablecoins, including DAI, USDD, USDP, GUSD, LUSD, and FRAX, also returned to the $0.99 range after depegging over the past weekend. As of March 12, the stablecoin economy is valued at $135.85 billion, following the market confidence bolstering stablecoin values. Moreover, stablecoins account for most of the global trade volume at the moment, with $71.78 billion out of the day’s $88.82 billion in crypto swaps.
What are your thoughts on USDC nearly regaining its parity with the U.S. dollar after the Fed announcement? Share your opinions in the comments section below.
today's cryptocurrency prices by market cap,
is crypto a good investment,
best cryptocurrency trading platform,
top crypto exchanges,
best crypto trading app,
best cryptocurrency exchange,
best cryptocurrency trading platform,
best crypto platform,
best platform to buy cryptocurrency,
top 10 crypto exchanges,
best crypto trading platform,
best crypto exchange,
top cryptocurrency exchanges,
best crypto broker usa,
us crypto brokers,
best crypto trading platform usa,
crypto brokers usa,
blockchain app development,
blockchain application development,
nft token development company,
top blockchain development companies,
defi development services,
smart contract development company,
cryptocurrency exchange software development company,
blockchain development services,
blockchain development company,
defi development company,
crypto accounting software,
taxbit stock,
best crypto tax software,
cryptocurrency tax software,
donate my car for tax credit,
donate your car for tax credit,
vehicle donation tax credit,
donate car for tax credit,
Forensics Online Course,
dallas accident lawyer,
car accident attorney dallas,
dallas car accident lawyer,
dallas car wreck lawyer,
truck accident lawyer dallas,
personal injury lawyer dallas,
truck accident attorney dallas,
dallas auto accident lawyer,
Best Business Phone And Broadband Deals,
structured settlement cash,
structured settlement cash now,
cash out structured settlement,
structured settlement need cash now,
cash for structured settlement payments,
get cash for structured settlement,
cash advance structured settlement,
FAQS
01 What is the safest Bitcoin trading platform?
Binance offers a relatively secure, versatile way to invest in and trade cryptocurrencies. The platform could be overwhelming for both beginners and experienced traders. Binance offers lower fees than many other cryptocurrency exchanges.
02 How do I start trading bitcoins?
03 What is the No 1 cryptocurrency?
Bitcoin (BTC)
04 Can I trust Bitcoin trading?
The short answer: No. Bitcoin is a particularly risky investment with more volatility than traditional investments of stocks, bonds and funds
05 How can I earn 1 bitcoin in one day?
1) Pionex – Use Bitcoin Growth Trading Bot to Earn Bitcoin.
2) Bitstamp – Using Staking Rewards.
3) Freecash.com – Fastest Way to Get Free Cryptos.
4) Tipping Bots And Platforms.
5) Playing Online and Offline Games.
6) Mining Browsers And Free Mining Software.
06 How do I invest in Bitcoin?
How Can I Invest in Bitcoin? You can invest in Bitcoin directly by using one of the major cryptocurrency exchanges, such as Coinbase or Binance. Another way to gain investment exposure to Bitcoin is to buy shares in a company with significant Bitcoin exposure, such as a Bitcoin mining company.
07 How to make $100 a day trading cryptocurrency?
By investing roughly $1000 while monitoring a 10% increase solely on a single combination, it is possible to earn $100 every day in bitcoin. When contrasted to spending $200 and then monitoring a 50% increase on the pairing, this strategy is more reasonable.
08 What is cryptocurrency and how it works?
A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.
09 Is cryptocurrency real money?
Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger.
