Did Circle Get Rid of the Banking Crisis Thanks to Coinbase?

The world’s leading business-economy publication Fortunewho fell into a difficult situation during the banking crisis in the USA, Circle published an article about

After the bankruptcy of Silicon Valley Bank, which operates in California, it turned out that some crypto startups had large deposits in the said institution. According to the legal regulations in the country SVB because it was a local bank, only customers’ accounts up to $250,000 were protected.

However, stablecoin issuer Circle has revealed that $3.3 billion in assets is inside. After the news, there was a great panic in the crypto market.

Circle’s dollar-pegged stablecoin USDC It lost its stability and fell as low as $0.81.

Claim: Coinbase Opens Advance Loan to Circle

According to the claim of Forbes, from this stage on, the cryptocurrency exchange coinbase stepped in. The company decided to advance $3 billion to the stablecoin issuer to help Circle get through the crisis quickly.

Circle shared on Monday that after the crypto exchange’s rescue attempt, they will make up for all the funding if needed. However, government officials announced that they will consider all deposits as guaranteed so that no one will suffer from the SVB bankruptcy.

According to Forbes, after the American government’s move, the loan opened by Coinbase is no longer needed. There has been no denial yet from either side after the news.