After Circle Internet Financial Ltd. revealed that it had $3.3 billion invested in the now-defunct Silicon Valley Bank, the value of a significant cryptocurrency that mimics the U.S. dollar plummeted.
On Saturday morning, USD Coin's value dropped below 87 cents, as per CoinDesk data. This stablecoin is intended to be traded precisely at $1 and is backed by actual U.S. dollars and short-term government bonds, making it a crucial component of cryptocurrency trading.
Circle Internet Financial announced that it would assume responsibility for any deficiency in the collateral supporting its stablecoin USDC in case it did not receive the full amount of the $3.3 billion cash reserve it had on hold at Silicon Valley Bank.
Looks like HSBC will buy Silicon Valley Bank's UK business, ending the "nightmare" for British tech companies.
Let's see what happens with US regulators.