Jeremy Allaire, the CEO and co-founder of Circle, has reported that since March 13th, they have had access to their $3.3 billion in assets kept with Silicon Valley Bank which has since gone under.
Allaire told Bloomberg Markets on March 14 that he thought almost all of the assets from the failed lender could be retrieved.
USD Coin, a stablecoin created by Circle, temporarily deviated from its fixed value following the announcement that $3.3 billion of its funds had been frozen at SVB.
Since March 11, the dollar peg of the stablecoin has been restored; however, large numbers of redemptions of USDC have caused the market cap of the stablecoin to decrease by almost 10%, as reported by TradingView.
At the same time, Tether (USDT), which is a rival of USDC, has seen its market capitalization rise by more than 1% to $73.03 billion since March 11.
Even though the amount of temporarily locked funds, which was less than 8% of USDC’s token reserves according to its January reserve report released on March 2, was relatively small, it had a notable influence on USDC.
The report stated that USDC was backed by more than the necessary amount of collateral, with the majority of its reserve consisting of short-term United States Treasury Bills. These assets are highly liquid, issued by the U.S. government, and generally seen as one of the safest investments in the world.
