Silicon Valley Bank's Failure Impacts USDC
In mid-March, the failure of Silicon Valley Bank temporarily jeopardized billions of dollars in Circle's cash reserves, causing the USD coin to lose its dollar peg. This event alarmed investors and led to significant outflows from the second-largest stablecoin. Circle held a portion of its USDC reserves at Silicon Valley Bank.
USDC Upgrades Market Infrastructure
At CoinDesk's Consensus conference, Allaire stated that Circle had successfully navigated the crisis and upgraded the market infrastructure behind USDC. He asserted that USDC is now the strongest and safest digital dollar available online.
Comparing USDC to Tether (USDT)
The Circle CEO also compared USDC to other lesser-known alternatives, specifically referencing Tether (USDT), the stablecoin market leader. Critics have expressed concerns about Tether's banking relationships and backing. However, since the banking crisis in March, USDC's market cap has dropped from $39 billion to $29 billion, while Tether has gained market share.
