The American government announced measures to protect the depositors of SVB and Signature Bank. Following the new, l’USDC has almost recovered the parity with the dollar.
On Sunday night, Treasury Secretary Janet Yellen, Fed Chairman Jerome Powell and FDIC Chief Martin Gruenberg jointly said they would take “ decisive measures “to protect the American economy and strengthen confidence in the banking system.
Secretary Yellen approved actions to allow the FDIC to complete the resolution of Silicon Valley Bank in a manner that fully protects all depositors . Depositors will have access to all of their money beginning Monday, March 13. Any losses associated with the resolution of Silicon Valley Bank will not be borne by the taxpayer,” an official statement said.
The same is true of Signature Bankanother crypto-friendly American bank closed on Sunday by the New York Department of Financial Services. After Silvergate and SVB, this is the third US bank to collapse in less than a week. These all had a number of crypto projects as clients.
“ We also announce a similar systemic risk exception for Signature Bank […] All depositors of this institution will be fully reimbursed. As with the Silicon Valley Bank resolution, no losses will be borne by the taxpayer,” the document states, although it does note that shareholders and certain unsecured creditors will not be protected.
As the USDC stablecoin, which was falling against the dollar on Saturday, approached parity with the greenback yesterday at about $0.97, its price suddenly jumped and exceeded $0.99 after the rescue announcement of the United States in the late evening.
Tonight, Circle reported that the 3.3 billion dollars reserve of theUSDC held at Silicon Valley Bank would be “ fully available” on Monday morning.
We are encouraged to see the U.S. government and financial regulators taking critical steps to mitigate risks to the banking system,” commented CEO Jeremy Allaire.
USDC Issuer further indicated that the reserves of its stable digital coin, which today weighs about $41 billion, did not include funds at Signature Bank.
DAIanother major stablecoin that had also fallen off the dollar, has also almost regained parity at around $0.99.
At the same time, the total market capitalization of the cryptocurrencies is back above 1000 billion dollars. Late yesterday, Bitcoin (BTC) started to rise again. Its price gained nearly 9% over 24 hours to about $22,450.
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