The U.S. cryptocurrency firm Circle's USD Coin lost its dollar peg and fell to a record low Saturday morning.
to shore up its balance sheet. What followed was the rapid collapse of a highly-respected bank that had grown alongside its technology clients.
In a tweet Friday, Circle said it has $3.3 billion in remaining reserves at SVB. The company called for the continuity of the bank and said it will follow guidance from regulators.sudden collapse of FTX last year , and USDC's break with the dollar could signal more trouble ahead. Stablecoins, like banks, are vulnerable to runs.
SVB customers withdrew a staggering $42 billion of deposits by the end of Thursday, according to a California. By the close of business that day, SVB had a negative cash balance of $958 million, according to the filing, and failed to scrounge enough collateral from other sources. If USDC holders get spooked or worry that there is not enough money in reserve, they could also rush to sell or exchange their coins.
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