Circle, the publisher of USDC, said in a statement on March 11 that the company planned to use "technical resources" to fill the gap in reserves after the collapse of Silicon Valley banks.

According to Circle, liquidity in USDC will actually be "restored when Bank of America opens on Monday morning", allowing USDC to be redeemed at 1:1 to the dollar.

Before that, the stable loan currency lost its $1 hook on March 11, and the transaction price was as low as $0.87, and then slowly hung up again, at $0.98 in the offering. But after the disclosure of Circle's $3.3 billion in reserves at Silicon Valley Bank, the stable currency lost its peg.

Silicon Valley is one of the largest lenders in the United States and is an important participant in venture capital firms. The financial institution was shut down by California's Department of Financial Industry maintenance and Innovation on March 10, adding to worries about the future. The Federal Deposit car Insurance Company has been identified as the receiver to protect insured deposits.

In its announcement, Circle affirmed that Silicon Valley is a "respectable and trusted partner of the American innovation economy" and that the US innovation economy has suffered a "typical bank run, just like we saw during the 2008 financial storm." Very few traditional finance have sufficient liquidity to bear this crowding out. "

SVB suffered significant losses, forcing them to sell long-term assets to meet redemption requirements. This asset settlement period caused liquidity to tighten in the short term, causing FDIC to intervene in the bank's management methods yesterday. The fate of SVB will be decided by the Federal Deposit Auto Insurance Company this weekend, and it is hoped that he will find a 100% solution to protect users' property.

USDC is the second largest stable ecosystem, with a market capitalization of more than $42 billion as of January 31, and is the collateral for many stable ecosystems. Cointelegraph reported earlier today that its pegging has caused immediate harm to other relatively stable ecosystems.

According to the Cointelegraph, the rescue operation is under way less than 72 hours after the bankruptcy of the American High-tech Bank. According to Claren Elliott, chief investment officer of the endless Equity Fund, "large banks are actively recycling SVB business processes." The Federal Deposit car Insurance Company (FDIC) also pays 95 per cent of uninsured deposits for acquirers, while "50 per cent of uninsured deposits will be paid next week."

A new financial audit of Circle in January showed that USDC 100 per cent was applied by cash US Treasuries, and as of January 31, US banks had nearly $8.6 billion, or about 20 per cent of their reserves. Another $33 billion in reserves is held in U.S. Treasuries, which BlackRock has registered as a government money fund under Circle Reserve Fund management and managed by Bank of New York Mellon. Circle's January report was reviewed and verified by Deloitte, the big four accounting firm.