Cryptocurrency exchange Binance announced in its announcement that it will list up to 30x leveraged trading pairs on the margin for stablecoin USDC, which has recently lost its pegged to $1.
Leveraged transactions for USDC will start at 20:00 Turkish time. The other asset of the pair will be USDT.
USDC Price Continues to Trade Below $1
The USDC stablecoin, launched by cryptocurrency company Circle, had problems after the Silicon Valley Bank, where it held its reserves, went bankrupt and was seized by US authorities. The USDC price dropped to as low as $0.82 after it was revealed that the company had $3.3 billion stuck in the bank.
However, Circle officials claimed that if US FDIC officials did not make a full recovery, they would spend their own resources to fill the gap.
US Treasury Secretary Janet Yellen recently said that there will be no bailout for the bank.
On Friday, the bank went bankrupt less than 48 hours after it announced plans to raise capital, making it the largest credit institution in the US in more than a decade. The company, which has grown by collecting deposits from technology startups in recent years, started to lose money as these customers depleted their funds and withdrawn their balances.
Silicon Valley Bank had more than $175 billion in deposits and $209 billion in total assets at the end of last year, but it was costly to sell those assets to meet their cash demands. That’s because the SVB was heavily burdened with bonds and Treasury bills that depreciated as the Federal Reserve raised interest rates.
*Not investment advice.
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