The USDC token falls sharply below its intended 1-1 dollar peg
$3.3 billion of its reserves are at failed Silicon Valley Bank
Updated on
The second-largest stablecoin in crypto fell from its intended $1 peg on Saturday, trading as low as 81.5 cents, hurt by the exposure of issuer Circle Internet Financial Ltd. to the collapsed Silicon Valley Bank.
USD Coin, or USDC, is a key plank of crypto markets and is supposed to hold a constant $1 value, fully backed by reserves of cash and short-dated Treasuries. But $3.3 billion of that roughly $40 billion stockpile is with Silicon Valley Bank, which has just become one of the largest US bank failures in recent history.