After yesterday’s events, Circle‘s issuer USDC was de-pegged from the U.S. dollar. However, Circle stated that its operations were proceeding normally.
Circle Claims Operations Are Normal Despite the Incidents
On Kraken, the USDC/USDT trading pair fell to a low of $0.94, the lowest price since April 2021. As of Saturday at 02:54 UTC, it had rebounded to approximately $0.984. Concerns over the effects of Silicon Valley Bank’s bankruptcy caused USDC to decline from $1 on Friday, even though it is intended to retain a 1-to-1 peg with the U.S. dollar.
Concerns have been raised that funds backing the stablecoin are currently frozen because an undetermined percentage of USDC’s currency reserves is parked at the now-defunct bank. The cornerstone of the cryptocurrency business is built on stablecoins like USDC. Therefore, deviating significantly from $1 or another fiat money raises questions about their stability.
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