Coinbase has resumed USDC to USD conversion as the banks reopen after the weekend break. And the stablecoin has regained its $1 peg.
As crypto recovers back to normal after a weekend full of volatility, Coinbase announced the resumption of the USDC to USD conversion. Lastly, the stablecoin, USDC, has almost recovered its peg, trading at $0.995 per CoinMarketCap.
USDC Safe From Silicon Valley Bank Exposure
The funds deposited at Silicon Valley Bank (SVB) made up 8% of USDC’s total reserves. But, Circle, the issuer of USDC, confirmed through a Monday press release that the risk had been removed from the $3.3 billion USDC reserves.
This was due to the Federal Reserve announcing it would step in to protect depositors at SVB and Signature Bank. Jeremy Allaire, Circle’s Chief Executive Officer (CEO), tweeted that they will transfer the reserves from the SVB to BNY Mellon.
Bitcoin Trades at Monthly High
On Saturday, USDC lost its peg by almost 12%, trading at around $0.88. The stablecoin lost over $6 billion in market capitalization after Circle revealed its exposure to SVB. But by Sunday, it recovered more than 7% of its peg.
Along with USDC, the broader crypto market has also recovered from the lows. As of writing, Bitcoin is trading at a monthly high of $24,149, up by over 18% in the past 24 hours. After the surprise market turnaround, over $305.51 million worth of shorts have been liquidated in 24 hours, according to Coinglass.
With today’s price rally, the crypto influencer Neel believes that Bitcoin is fulfilling its purpose as a hedge against the broken financial system.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.