USDC depegs as Circle confirms $3.3B stuck with Silicon Valley Bank
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Almost immediately after USD Coin (USDC) issuer Circle revealed it was not able to withdraw $3.3 billion of its $40 billion from Silicon Valley Bank (SVB), the resultant sell-off caused the price of the stablecoin to fall below its $1 mark.
On March 9, Circle had initiated a wire transfer for the removal of its funds from SVB as the Federal Deposit Insurance Corporation-insured
Just two week ago, on Feb. 23, USDC issuer Circle announced plans to increase its staff headcount by 25% — going against the ongoing layoff trend.
During the timeline, Circle’s chief financial officer Jeremy Fox-Geen had shared their intent to go public but planned on waiting for better market conditions. He added that the crypto industry needs more distance from the Terra and FTX implosions for public-market investors to re-evaluate the future of digital-assets businesses.
