Coinbase halts conversion feature between U.S. dollars and USDC

Quick Take

  • Coinbase halts conversions of USDC to dollars over the weekend.
  • The news comes after Silicon Valley Bank collapsed and Circle said it had $3.3 billion in exposure to the failed bank. 

Coinbase said Friday evening that it halted support for conversions between U.S. dollars and stablecoin USDC.

"We are temporarily pausing USDC:USD conversions over the weekend while banks are closed," the firm said in a tweet. "During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours."

The firm typically offers traders a feature that allows them to seamlessly exchange USD for USDC. Coinbase plans to restart the feature on Monday. 

The news came moments after Circle confirmed its USDC had exposure to Silicon Valley Bank, which earlier Friday became the largest bank to fail since the 2008 financial crisis. California's financial regulator seized control of the bank Friday and put it in FDIC receivership. Silicon Valley Bank's collapse came shortly after crypto-friendly Silvergate said it was liquidating. 

"Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25%  portion of USDC reserves held in cash," Circle said in a tweet late Friday. "While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally."


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Circle later said in a tweet that its exposure stood at $3.3 billion. 

"Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB," Circle said in a tweet. 

Circle and Coinbase both manage USDC, which was founded in 2018.

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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].


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