USDC Has Bounced Back After Announcement By The Feds

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USDC, the stablecoin of Circle, has been increasingly climbing up to its peg at $1 after it followed the confirmation from Jeremy Allaire, the CEO, that the reserves were safe, and the firm had quite a few banking partners who were lined up at the banking open tomorrow morning signs.

According to data from CoinGecko, the USDC was up by 3.35% over the last 24 hours where it finally sat at around $0.99 at the time of publication. The price of the stablecoin went as low as $0.87 over the weekend, which also brought forth concerns about around $3.3 billion worth of the stablecoin reserves being held at the Silicon Valley Bank, which had been shut down by the California Department of Financial Protection and Innovation on the 10th of March. 

USDC Is On An Ascension Again

USDC’s parent company, Circle, also reportedly has had an undisclosed amount of reserves that were stuck at Silvergate- which was recently bankrupt. In a Twitter thread that took place on the 12th of March, the CEO went on to praise the US government, as well as the Federal Reserves, for the funding program worth $25 billion which would support the banks that were troubled through liquidity- such as the SVB.

The CEO also added that after the implosion of Signature Bank on 12 March, Circle wasn’t looking towards processing the minting and redemption of the stablecoin through SigNet and that the firm would temporarily rely on settlements through the BNY Mellon. 

The CEO of Circle also went on to state that things with regards to USDC will be moving quite quickly- as he also revealed that Circle was quite intent on bringing in a new transaction banking partner with automated redemption and minting quite soon.