He closing of Silicon Valley Bank (SVB) caused cryptocurrencies to go ‘flying’. Its owner, Circle, acknowledged a $3.3bn exposure to the bank.
The USDC cryptocurrency was halted late Friday after its creator announced an exposure of dollars in the bankrupt bank’s coffers.
Circle acknowledged that it was unable to withdraw all of its deposits at SVB, which the US Deposit Insurance Agency took control of on Friday.
Through his Twitter account he revealed that his assets were still in the SVB coffers, inaccessible as they were.
The IFCD It only guarantees deposits of up to 250 thousand dollars per client per bank. On Friday it said it would issue a certificate to SVB depositors whose funds exceed that amount.
What are USDC cryptocurrencies?
The USD Coin or USDC is a currency launched in 2018 and is digitally linked to a currency created by the central bank, the US dollar.
It is described as ‘of stable price‘ so it is possible to exchange 1 USDCD for one dollar, which gives it stability.
Eligible customers earn rewards for every USD Coin they hold. Their characteristics are:
- Stable value: customers with a US dollar bank account can always switch.
- Backed by Protected Assets: Each USDC is backed by one dollar or asset of equivalent value.
- youEthereum technology: USDC is an Ethereum token, so it is stored in a compatible wallet known as Coinbase.
- Global Transactions: USDC is designed to move dollars globally from the cryptocurrency wallet to other conversions, businesses, and individuals.
