BUSD

Binance and Coinbase, two prominent cryptocurrency exchanges, both announced on Friday night that they will temporarily halt USDC conversions while the ripple effects of Silicon Valley Bank&#39;s failure are being felt.Concerns that Circle, the entity that created the USDC stablecoin, might have kept some of USDC&#39;s cash reserves at Silicon Valley Bank, which California&#39;s financial watchdog shut down on Friday, prompted the steps. (Centre, a joint venture between Coinbase and Circle, launched USDC at first) Binance announced that it has temporarily stopped the automatic conversion of USDC to BUSD, citing &#34;current market conditions&#34; but excluding Silicon Valley Bank.The article stated, &#34;This is a typical risk-management procedure to conduct as we watch the situation. Coinbase, the biggest cryptocurrency exchange in the United States, also declared it will halt USDC conversion to USD when banks are closed over the weekend in response to Binance&#39;s statement.Coinbase stated, without specifically mentioning Silicon Valley Bank, that during times of increased activity, conversions &#34;rely on USD transfers from the banks that clear during normal banking hours,&#34; and that conversions will resume on Monday after banks had reopened.The Friday collapse of SVB has shocked everyone in the tech sector. The cryptocurrency market was not spared, as a number of businesses, including Circle, Pantera, Avalanche, and bankrupt crypto firm BlockFi, disclosed their current exposure to the California bank.Finally, late on Friday night, Circle revealed that Silicon Valley Bank still holds $3.3 billion of the cash underpinning USDC. According to the company, Circle uses Silicon Valley Bank as one of six banks to manage 25% of its USDC reserves.Circle tweeted that it &#34;joins demands for the continuation of this key bank in the U.S. economy and will follow the guidelines offered by state and Federal regulators&#34; along with other customers and depositors that relied on SVB for banking services.According to CoinGecko, the trading price of USDC, which was intended to stay fixed at $1, plunged Friday night, falling from $1 to $0.93. These prices for USDC were last seen in May 2019, when the stablecoin hit a record low of $0.89. &#34;Circle &amp; USDC continue to operate regularly while we await information on how the FDIC receivership of SVB will impact its depositors,&#34; Circle tweeted.

Coinbase, Binance Suspend USDC Conversions as Dollar Peg Wobbles

ItsBitcoinWorld

Other articles published on Mar 11, 2023

Silicon Valley Bank Collapse Hammers Dogecoin Price Down 11% – More Pain For DOGE?

Gotta Catch NFTs? The Pokémon Company Is Hiring a Web3 Expert

Binance and Coinbase halt USDC conversions as Silicon Valley Bank collapse sparks crypto crisis

Kaspa CLI Wallet Tutorial by AvogHadro

Crypto VC Firm Pantera Used Silicon Valley Bank as a Custodian

Both Binance and Coinbase Temporarily Suspend USDC Conversions

Join our free newsletter for daily crypto updates!