Circle, one of the companies behind USDC, announced the strategies they are planning for the correction of the stablecoin’s decline.
Circle Announces Enterprise Sourcing Strategy for USDC
With the collapse of the Silicon Valley Bank, many stablecoins, including USDC, fell abnormally and destabilized. This was news that both victimized and scared many crypto investors. Circle announced in a statement that they could implement an institutional resource strategy to stabilize USDC at a 1:1 ratio again.
Enterprise Resource Strategy
The company plans to use its institutional resources to cover any reserve shortfall in the stablecoin price if it is unable to recover its assets in the Silicon Valley Bank. Other resources can be used if needed.
Impacts of the Silicon Valley Bank Collapse
With the collapse of the Silicon Valley bank, the USDC price broke its 1:1 peg and fell by nearly 11%. After these negative developments, the company made some improvements with its statements, and the price started to return to normal again.
Circle has a total of $3.3 billion in assets in the Silicon Valley Bank. The company’s victimization surprised many investors. However, according to a company announcement, it had requested to move its assets before the collapse of the Silicon Valley Bank. The developments on Monday, March 13, 2023, seem significant for the company.
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