The most talked about altcoin project in the crypto money market in recent days is undoubtedly USD Coin (USDC). Following the collapse of Silicon Valley Bank, the stablecoin’s dollar peg broke down, causing turmoil in the market as USDC issuer Circle was unable to access its reserves at the bank. The waters settled after the Federal Reserve stepped in. Now, Circle CEO Jeremy Allaire has announced that his company has access to reserve assets in its Silicon Valley Bank account on Monday.
Important development for the altcoin project on the agenda!
cryptocoin.comAs you follow, the failures of Silicon Valley Bank and Signature Bank had a devastating effect on US markets. However, after this, the US Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) stepped in to prevent the systemic risk of the contamination. After this development, the panic in the markets was overcome. As a recent development, Jeremy Allaire, CEO of Circle, shared the latest information on the trend.
The crypto market has been bullish this week as the SVB-related contagion spread to the US financial sector. Meanwhile, amid high volatility, even a few bank stock trades have been halted. On the other hand, panic was averted when regulators reassured deposit customers. However, bank failures in the US were interpreted as the Fed’s loosening of its aggressive stance on interest rate hikes. On top of that, when the US CPI data came in line with expectations, enthusiasm dominated the crypto market. Bitcoin price hits a three-month high, while USD Coin (USDC) has regained almost $1 stable after the latest developments.
After news broke of the shutdown of Silicon Valley Bank, many stablecoins fell in value due to the mass sell-off. This was triggered after Circle issued a statement stating it had $3.30 billion in risk in Silicon Valley Bank. However, a bailout that involved the withdrawal of institutional funds to close the deficit with the SVB resulted in USDC returning to about $1.
Circle confirms SVB gains access to reserve assets
In the most recent development, Circle CEO Jeremy Allaire announced on Monday that his company had access to reserve assets in its Silicon Valley Bank account. While he didn’t mention how much of the assets the company has access to, Allaire said the company will make an announcement about it soon. In this context, Allaire noted:
As of Monday, we had access to deposits at the failed lender SVB. We will make an announcement about it soon.
He also said that he believes USDC is the safest digital dollar on the internet, amid all the FUD currently around US banks. Meanwhile, Bitcoin price saw the $26,000 milestone after the latest US Consumer Price Index (CPI) figures fell to 6% in line with expectations. At press time, Bitcoin is trading at $24,600, with altcoin projects mostly in the green.
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