The stablecoin USDC has nearly regained parity with the U.S. dollar after rising just above $0.99 on March 12, 2023, at 7:20 p.m. Eastern Time. The stablecoin jumped back to the $0.99 range after the U.S. Federal Reserve revealed it would bail out depositors of California’s Silicon Valley Bank (SVB) and New York’s Signature Bank. Following the Fed announcement, Circle CEO Jeremy Allaire said on Twitter that the company would rely on BNY Mellon to settle the process of minting and redemption.
Signature Bank Closure Forces Circle to Rely on BNY Mellon for USDC Minting and Redemption Settlements
At 8:45 p.m. Eastern Time on Sunday, March 12, 2023, the stablecoin usd coin (USDC) is trading at $0.998 per unit after jumping above the $0.99 range at around 7:20 p.m. Three minutes after the stablecoin returned to the $0.99 region, Circle CEO Jeremy Allaire tweeted that USDC operations would resume on Monday.
The announcement follows the U.S. Federal Reserve’s disclosure that it established a backstop entity called the Bank Term Funding Program (BTFP) to assist banks facing liquidity challenges. The central bank of the United States also stated that all depositors of Silicon Valley Bank (SVB) and Signature Bank would be fully…