USDC has decoupled from the dollar due to the collapse of Silicon Valley Bank, and is currently trading at $0.89. This seems to be just the beginning.
On Friday evening, Coinbase announced that it had halted support for conversions between US dollars and the stablecoin USDC. The company usually offers traders a feature that allows them to seamlessly exchange US dollars for US dollars. Coinbase plans to restart this feature on Monday.
This news came just seconds after Circle confirmed that its USDC has access to Silicon Valley Bank, which on Friday became the largest bank to collapse since the 2008 financial crisis. On Friday, the California financial regulator took control of the bank and handed it over to the FDIC. Silicon Valley Bank collapsed shortly after crypto-friendly Silvergate announced its liquidation.
$3.3 billion of the approximately $40 billion in US dollar reserves remain in Silicon Valley Bank.”
