Representatives of Circle Internet Financial announced yesterday that they would cover the deficit of assets supporting the USDC stablecoin in case of non-repayment of funds in the amount of $3.3 billion from the reserve of the bankrupt Silicon Valley Bank.
In the Circle corporate blog, they announced the comprehensive support of the USDC using their own resources, as well as, if necessary, turning to external capital. It is also reported that Circle is trying to withdraw its assets before the collapse of Silicon Valley and that the withdrawal of funds can be implemented as early as next Monday, when US banks resume their work.
Circle Internet Financial does not exclude the possibility of a full refund of SVB funds, since any such refund may take some time while the FDIC is engaged in issuing debt receipts and advance dividends to deposit holders.
The company’s message was published after serious unrest in the cryptocurrency market, which led to a drop in the value of the USDC stablecoin pegged to the US dollar. Thus, the cost of USDC quickly fell to $0.88 over the last few days, but after Circle’s statement, the price of the stablecoin began to rise and is currently in the range of $0.96-$0.97.