On Saturday, March 11, 2023, Circle Financial updated the public about its stablecoin, USDC, and noted that the stablecoin’s liquidity operations will resume normally on Monday morning in the United States. Circle said that the company’s teams would be ready on Monday to “handle significant volume” and that the firm will “stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary.”
Circle Financial Confident in USDC Stability Despite SVB Failure
Circle, the issuer of the second-largest stablecoin by market capitalization, usd coin (USDC), addressed the public on Saturday, noting that the firm will be ready on Monday to “handle significant volume.” The company discussed the failure of Silicon Valley Bank (SVB) and also emphasized the USDC’s “strong liquidity and reserve assets.” On Monday, the stablecoin issuer noted, “USDC will remain redeemable 1-for-1 with the U.S. dollar.”
While usd coin (USDC) is a crypto asset that operates 24/7 on various blockchains, Circle emphasized that “issuance and redemption is constrained by the working hours of the U.S. banking system.” Circle’s stablecoin USDC dropped to a low of $0.877 per unit on Saturday, March 11, 2023, at 3:02 a.m. ET….
