Stablecoins rally as Circle announces it will cover all USDC redemptions 1:1

Quick Take

  • On Saturday, March 11, Circle CEO Jeremy Allaire announced that Circle pledges to cover any shortfall in the assets backing USDC if it does not receive the entirety of a $3.3 billion cash reserve held at Silicon Valley Bank.
  • USDC is a stablecoin meant to be pegged to the US dollar but fell in value after Silicon Valley Bank’s collapse.
  • The value of the stablecoin fell as low as $0.88 before rebounding to $0.97 after the announcement.
  • Circle said it would stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary.
  • Other stablecoins, such as Dai and Gemini USD, have rallied on this news.

The post Stablecoins rally as Circle announces it will cover all USDC redemptions 1:1 appeared first on CryptoSlate.

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