Major cryptocurrencies stabilized on Monday after US authorities announced plans to limit the fallout from the Silicon Valley Bank (SVB) collapse and with stablecoin issuer USD Coin saying the asset remains redeemable vs. dollar.
The USD currency, also known as USDC, rebounded to $0.998 from an all-time low of $0.87 it hit on Saturday, well below its target of 1:1 against the dollar. The decline was triggered by concerns over stablecoin issuer Circle being exposed to the SVB.
Meanwhile, bitcoin gained 6% to $23,350, a recovery of more than 13% from the lows it hit the previous day.
Circle chief executive Jeremy Allaire said in a tweet Sunday that USDC’s $3.3 billion reserve deposit, about 8% of the total, held at the SVB will be fully available when US banks open on Monday. .
“Circle’s USDC operations will be open for business, including with new automated settlement through our new partnership with Cross River Bank,” Allaire said.
Cross River did not immediately respond to a request for comment.
Stocks exposed to cryptocurrencies have also increased.
Cryptocurrency miners Riot Blockchain and Marathon Digital gained more than 11%, while cryptocurrency exchange Coinbase gained 6.3%.
The relief for cryptocurrencies has been contained as New York’s top financial regulator took over Signature Bank, a major banking firm for cryptocurrency companies.
Cryptocurrency exchange Coinbase tweeted on Sunday that, following the removal of the signature, it was “facilitating all customer cash transactions with other banking partners.” According to the Coinbase website, these are South Dakota-based JPMorgan Chase, Cross River Bank, and Pathward.
Coinbase said it had approximately $240 million in corporate cash in Signature as of Friday’s close, but expects to fully recover the funds.
Source: Terra
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