In an official statement, USDC issuer រង្វង់ stated that it would resume normal operations from Monday and that the stablecoin will be redeemable one-for-one with the U.S. dollar as it plans to utilize “corporate resources” to cover any shortfall in its reserves following the bank’s abrupt shutdown on March 11.
Circle Might Use External Funding
According to an official blog post published by Circle, the business stated that in case the bank failed to return the necessary cash holdings, it would support its stablecoin by covering it with company resources. Additionally, Circle also declared that it would seek external funding if such a scenario arises.
អានបន្ថែម: តម្លៃ Bitcoin Unfazed ដោយវិបត្តិ USDC Stablecoin, សញ្ញានៅពេលដំណើរការ Bull នាពេលខាងមុខ
The announcement came after the stablecoin dropped below its $1 peg on March 11 and traded as low as $0.87 before gradually re-pegging itself at $0.97 at the time of writing. Shortly after Circle revealed that $3.3 billion of Circle’s reserve was held at Silicon Valley Bank, the តម្លៃ USDC depegged from its original $1.
Sharing an Update on USDC and Silicon Valley Bank. https://t.co/Ug3qpot8sJ
- Jeremy Allaire (@jerallaire) ខែមីនា 11, 2023
Circle Attempted Withdrawing Prior Collapse
Circle has stated that it made an effort to relocate its assets before SVB went kaput and that the transaction may be finalized on Monday, when normal operations at U.S. financial institutions are expected to resume. The firm was quoted as saying:
We have reason to believe that under applicable FDIC policy, transfers initiated prior to a bank entering receivership [bankruptcy] would have otherwise been processed normally.
The well-known Silicon Valley Bank, which was the preferred bank for venture capitalists and early-stage startups, was shut down by the California Department of Financial Protection on Friday. Although not as alarming as the ស៊ីលហ្គេត situation, many in the crypt community were shocked to learn that Circle, the company behind the USDC stablecoin, has an unreported exposure to the failing bank.
ខ្លឹមសារដែលបានបង្ហាញអាចរាប់បញ្ចូលទាំងគំនិតផ្ទាល់ខ្លួនរបស់អ្នកនិពន្ធនិងស្ថិតក្នុងស្ថានភាពទីផ្សារ។ ធ្វើការស្រាវជ្រាវទីផ្សាររបស់អ្នកមុនពេលវិនិយោគលើគ្រីបគ្រីប។ អ្នកនិពន្ធឬការបោះពុម្ពផ្សាយមិនទទួលខុសត្រូវចំពោះការបាត់បង់ហិរញ្ញវត្ថុផ្ទាល់ខ្លួនរបស់អ្នកទេ។
Source: https://coingape.com/usdc-set-to-regain-peg-as-circle-devises-new-strategy/