Bitcoin, USDC stablecoin rally after US intervenes on SVB
Bitcoin and other cryptocurrencies rallied on Monday after U.S. authorities announced plans to limit the fallout from the collapse of Silicon Valley Bank (SVB) and as cryptocurrency firm Circle assured investors its peg was secure.
The U.S. Treasury and Federal Reserve announced a range of measures to stabilise the banking system and said depositors at SVB (SIVB.O) would have access to their deposits on Monday.
The moves came as authorities took possession of New York-based Signature Bank (SBNY.O), the second bank failure in a matter of days.
Stablecoin USD Coin (USDC) , which had lost its 1:1 dollar peg and hit an all-time low on Saturday on concerns over the exposures of Circle, the firm behind USDC, to Silicon Valley Bank, recovered. It was at $0.9917, closer to par and up from last week’s lows around $0.88.
Circle CEO Jeremy Allaire said in a tweet its $3.3 billion USDC reserve deposit held at the collapsed Silicon Valley Bank (SIVB.O) will be fully available when U.S. banks open Monday.
“Circle’s USDC operations will open for business, including with new automated settlement via our new partnership with Cross River Bank,” Allaire said.
This report’s information was first seen on REUTERS; to read more, click this link.
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