Recently Coinbase informed that it temporary stopped supporting USD/USDC conversions. The company usually provides traders with a feature that allows them to convert US dollars to USDC seamlessly. Coinbase plans to relaunch this feature on Monday.
Coinbase Stops USD/USDC Conversion Feature
“We are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours.” – the company informed.
The news comes shortly after Circle confirmed its USDC is linked to Silicon Valley Bank. Silicon Valley Bank on Friday became the largest bank to fail since the 2008 financial crisis. California’s financial regulator took control of the bank on Friday and placed it in FDIC receivership. The collapse of the Silicon Valley Bank occurred shortly after the respected cryptocurrency Silvergate announced its liquidation.
“Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.” – Circle said in a tweet late Friday.
Circle later said in a tweet that its investment was $3.3 billion.
“Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB,” Circle said in a tweet.
It is worth noting that Circle and Coinbase both manage USDC, which was founded in 2018.
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