Binance Takes Risk Management Steps Amid Market Conditions
Binance cited "current market conditions" for their decision to temporarily suspend the auto-conversion of USDC to BUSD. The exchange stated that this was a normal risk-management step while they monitored the situation.
Coinbase Temporarily Suspends USDC Conversion During Bank Closure
Following Binance's announcement, Coinbase, the largest cryptocurrency exchange in the US, also said that it would suspend USDC conversion to USD while banks are closed over the weekend. Coinbase stated that conversions would start again on Monday when banks reopened.
USDC Price Goes into Freefall After Silicon Valley Bank's Closure
The trading price of USDC, which is meant to remain pegged at $1, dropped from $1.00 to $0.93 on Friday night, according to CoinGecko. This is the lowest USDC had seen since May 2019, when the stablecoin reached an all-time low of $0.89.
Circle Discloses $3.3 Billion in Cash Backing USDC is Locked in Silicon Valley Bank
On Friday night, Circle disclosed that $3.3 billion worth of the cash backing USDC remains locked in Silicon Valley Bank, one of six banks Circle uses for managing 25% of USDC reserves. Circle stated that they would follow the guidance provided by state and federal regulators.
