According to some sources, 50% of uninsured deposits will be paid by next week.
USDC Reaches Its Stable Value Again
Developments regarding stablecoins, which have been on the agenda of the cryptocurrency community for the last week, continue. According to a post by Unlimited Funds’ chief investment officer Bob Elliot on March 11, relief efforts may have begun less than three days after the collapse of Silicon Valley Bank (SVB). In addition, Elliot claimed that big banks are actively trying to buy the SVB business.
The United States Federal Deposit Insurance Corporation (FDIC) plans to pay 95% of uninsured deposits, and 50% of uninsured deposits will be paid next week. On the positive news coming after the crisis, USDC stablecoin is trading at $0.96 in the crypto market.
Unverified Reports
Of USDC’s issuer Circle’s total reserves of $40 billion, $3.3 billion was held at SVB. In addition, an estimated $5 billion of leading blockchain venture capitals such as Pantera Capital and Paradigm are reportedly held at Silicon Valley Bank.
Although the reports are unconfirmed at the moment, according to some sources, various methods are being worked on to resolve the issue, and they will be able to get half of their deposits back by next week. Hal Press, the founder of investment firm North Rock, said:
“Long term it’s likely they get 90%+ back and very possible no depositors loses a single $,“
Mike Mouse, deputy director of CrossCountry, made a similar comment:
“SVB’s customers will have $250k unfrozen on Monday, and ~50% of the remaining balance dividended to depositers within 1-2 days of Monday (money market accounts likely to get 100%). The remainder will be dependent upon future recoveries; most recovery will be within 3-6 months“
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