Major cryptocurrencies stabilize after US intervention in SVB collapse – 03/13/2023 – Market

Major cryptocurrencies stabilized on Monday after US authorities announced plans to limit the fallout from the collapse of Silicon Valley Bank (SVB) and as stablecoin issuer USD Coin said the asset remains redeemable against the dollar. .

USD Coin, also known as USDC, rebounded to $0.99, up from an all-time low of $0.87 hit on Saturday, far below its intended target of 1:1 against the Dollar. The drop was sparked by concerns about Circle, the company issuing the stablecoin, being exposed to the SVB.

By early afternoon on Monday, bitcoin was up 6% to $23,350, a recovery of more than 13% from the lowest prices reached the previous day.

Jeremy Allaire, chief executive of Circle, said in a tweet on Sunday that the $3.3 billion USDC reserve deposit, about 8% of the total, held at the SVB would be fully available when US banks open. in this Monday.

“Circle’s USDC operations will be open for business, including with new automated settlement through our new partnership with Cross River Bank,” said Allaire.

Cross River did not immediately respond to a request for comment.

Stocks exposed to crypto assets also surged.

Cryptocurrency miners Riot Blockchain and Marathon Digital gained more than 11%, while cryptocurrency exchange Coinbase gained 6.3%.

Relief for cryptocurrencies was contained by the fact that 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 Signature takedown, it was “facilitating all customer cash transactions with other banking partners.” According to the Coinbase website, these are JPMorgan Chase, Cross River Bank and Pathward, based in South Dakota.

Coinbase said that, as of Friday’s close, it had approximately $240 million in corporate cash at Signature, but expects to fully recover the funds.