USDC, crypto rallies on news that SVB, Signature Bank deposits are safe

Quick Take

  • Stablecoin USDC was trading at $0.99 after news that its reserves held at SVB are safe. 
  • Crypto markets rallied after regulators said both SVB and Signature Bank reserves would be returned.

USDC nearly regained its peg and cryptocurrencies rallied on the news that all Silicon Valley Bank and Signature Bank deposits will be fully returned to customers.

The stablecoin was trading at $0.99 as of 7:37 pm ET on Sunday after losing its peg on Friday after its issuer Circle announced that it had $3.3 billion of USDC reserves stuck at SVB.

Circle Chief executive Jeremy Allaire said on Twitter that "100% of deposits from SVB are secure and will be available at banking open tomorrow."

USDC/USD Chart by TradingView

Bitcoin, which has been trading under $21,000 since Thursday, was up 7.7% today and rose to just over $22,000 as regulators announced they would also be shutting down Signature Bank.

RELATED INDICES

Meanwhile, Ether rose to $1,590 and was up 7.9% in the last day.

 

BTC/USD Chart by TradingView


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About Author

Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at Patch.com and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).

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