USDC 'Stablecoin' Breaks Peg As Circle Admits Billions Stuck With SVB
Zero Hedge
MAR 11, 2023

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Yesterday afternoon, after the equity market close, USD Coin (USDC) issuer Circle revealed that $3.3 billion of its $40 billion reserves were tied up in now-failed Silicon Valley Bank (SVB).

Specifically, on March 9, Circle initiated a wire transfer to remove its funds from SVB as the FDIC-insured bank was about to shut operations. However, two days later, on March 11, Circle confirmed that the wire transfers were not wholly processed, with $3.3 billion of USDC reserves still with SVB.

Almost immediately, leading crypto exchanges Binance and Coinbase both said that they would temporarily suspend USDC conversions as the contagion from the collapse of SVB plays out.