USDC Stablecoin Nears Parity With USD After Fed’s Bailout Announcement

The stablecoin USDC has nearly regained parity with the U.S. dollar after rising just above $0.99 on March 12, 2023, в 7:20 вечера. 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 вечера. Eastern Time on Sunday, Категория 12, 2023, the stablecoin usd coin (USDC) торгуется на $0.998 per unit after jumping above the $0.99 range at around 7:20 вечера. Three minutes after the stablecoin returned to the $0.99 область, край, Circle CEO Jeremy Allaire твитнул that USDC operations would resume on Monday.

USDC Stablecoin Nears Parity With USD After Fed's Bailout Announcement

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 compensated.

This means Circle Financial won’t lose funds because the bailout will make depositors whole, but Circle does lose a banking partner with Signature being shut down by New York regulators.

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“We were heartened to see the U.S. government and financial regulators take crucial steps to mitigate risks extending from the fractional banking system,” Allaire said in a statement. “All deposits from SVB are 100% secure and will be available at banking open tomorrow.”

Allaire добавлен:

100% of USDC reserves are also safe and secure, and we will complete our transfer for [в] remaining SVB cash to BNY Mellon. As previously shared, liquidity operations for USDC will resume [в виде] banking open[с] tomorrow morning.

The Circle CEO also commented on the Signature Bank issue, as Circle had previously used the company’s Signet service, which facilitated settlements between USDC and USD. Signature Bank’s Signet is a similar service to Silvergate Bank‘s now-defunct SEN network. “With the closure of Signature Bank announced tonight, we will not be able to process minting and redemption through Signet. We will be relying on settlements through BNY Mellon,” Allaire said in his Twitter statement.

In addition to USDC, several other top stablecoins, including DAI, доллар США, USDP, GUSD, LUSD, and FRAX, also returned to the $0.99 range after депривязка over the past weekend. As of March 12, the stablecoin economy is valued at $135.85 миллиард, following the market confidence bolstering stablecoin values. Более того, stablecoins account for most of the global trade volume at the moment, с $71.78 billion out of the day’s $88.82 billion in crypto swaps.

Теги в этой истории
БНЙ Меллон, Генеральный директор круга, crypto swaps, Криптовалюта, DAI, депривязка, Эконом, кормили, Федеральный резерв, Финансовые регуляторы, fractional banking system, ФРАКС, Global Trade Volume, GUSD, Jeremy Allaire, liquidity operations, LUSD, market confidence, Market Values, minting, потенциал, public statement, redemption, резервы, риски, SEN network, Населенные пункты, Signature Bank, Signet, Silicon Valley Bank, Stability, Стейблкоин, Твиттер, Центральный банк США, доллар США, USDC, доллар США, USDP

What are your thoughts on USDC nearly regaining its parity with the U.S. dollar after the Fed announcement? Share your opinions in the comments section below.

Джейми Редман

Джейми Редман — руководитель отдела новостей News и журналист, работающий в сфере финансовых технологий, живет во Флориде.. Редман был активным членом криптовалютного сообщества с 2011. У него страсть к биткойнам, открытый исходный код, и децентрализованные приложения. С сентября 2015, Редман написал более 6,000 статьи для Новости о прорывных протоколах, появляющихся сегодня.

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