Circle, one of the world’s largest stablecoin issuers, held some of its USDC reserves in Silicon Valley Bank. While wondering about the fate of Circle assets in Silicon Valley Bank, which was recently closed by the California Department of Financial Protection and Innovation, a new statement came from the company about the USDC reserve.
Circle, the issuer of the USDC stablecoin, said that United States banks will resume normal operations when they open on Monday. Circle announced that the USDC stablecoin will be available at a 1:1 ratio to the US dollar after the closure of Silicon Valley Bank, which holds Circle’s $3.3 billion in reserves.
Circle stated that it continues to work to close any gap caused by the failure on the Silicon Valley Bank front and may seek outside financing if necessary. After the closure of the USDC stablecoin Silicon Valley Bank, the dollar lost its stable and its value decreased to $ 0.88.
In addition to all this, the US Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC), which are among the US authorities, are negotiating to establish a bailout fund for banks in order not to repeat a similar scenario.