Leading cryptocurrency exchanges Binance And coinbaseafter stablecoin issuer Circle was hit hard by the Silicon Valley crisis USDC repeatedly announced that they were suspending their conversions.
Binance avoided using the name Silicon Valley Bank in its announcement, referring to current market conditions.
Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion.
This is a normal risk-management procedural step to take while we monitor the situation.
— Binance (@binance) March 11, 2023
“Binance has temporarily suspended automatic conversion of USDC to BUSD due to current market conditions.”
After Binance’s announcement, some crypto lovers reminded that US-based Coinbase delisted BUSD in the past weeks. “bitter vengeance” made comments.
The biggest cryptocurrency Following the exchange’s announcement, Coinbase took to Twitter to announce that it had taken a similar measure.
We are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to re-commence conversions.
— Coinbase (@coinbase) March 11, 2023
“We have made the decision to temporarily suspend the USDC/USD conversion as banks are closed over the weekend. We plan to resume trading on Monday when the markets open.”
What’s the Connection Between Silicon Valley Bank and USDC?
Silicon Valley, the 15th largest bank in America, announced that it has suspended its operations the other day. While the stock market was negatively affected by the development, crypto also took its share. Circle, Avalanche, panthera and bankrupt of BlockFi It has close relations with the bank.
stablecoin Issuer Circle, in a statement at night, stated that its $ 3.3 billion deposits were stuck in the bank. This figure represents 8 percent of the total USDC reserves.
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