Stablecoins rally as Circle announces it will cover all USDC redemptions 1:1 News ▸ USDC ▸ Stablecoins
Stablecoins rally as Circle announces it will cover all USDC redemptions 1:1
Circle pledges to cover any shortfall in USDC stablecoin assets after Silicon Valley Bank collapse.
1 min read
Updated: Jun. 23, 2023 at 10:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Quick Take
- On Saturday, March 11, Circle CEO Jeremy Allaire announced that Circle pledges to cover any shortfall in the assets backing USDC if it does not receive the entirety of a $3.3 billion cash reserve held at Silicon Valley Bank.
- USDC is a stablecoin meant to be pegged to the US dollar but fell in value after Silicon Valley Bank’s collapse.
- The value of the stablecoin fell as low as $0.88 before rebounding to $0.97 after the announcement.
- Circle said it would stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary.
- Other stablecoins, such as Dai and Gemini USD, have rallied on this news.
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Posted In: USDC, Stablecoins
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USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Dai
$1.00008
Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.
Gemini Dollar
$0.99494
Gemini dollar (GUSD) combines the creditworthiness and price stability of the U.S.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Jeremy Allaire stands as the founder, chairman, and CEO of Circle, a trailblazing consumer Internet company.