Basically, after dollar coin publisher Circle announced that it could not get $3.3 billion of the $40 billion reserve from Silicon Valley Bank (SVB), the subsequent sale caused the price of the stable coin to fall below the $1 peg.

Circle made a wire transfer to move its assets out of SVB on March 9th, when the federal deposit insurance-insured bank was about to shut down its business process. However, a few days later, on March 11, Circle confirmed that the wire transfer had not been fully resolved and that SVB still had a $3.3 billion USDC reserve.

Cointelegraph Markets Pro and TradingView statistics show that USDC prices fell immediately after exposure, as shown below:

At the time of this writing, USDC's stock market value has fallen by more than 10 per cent, trading at $0.8774. Dante Dipat, chief strategy officer and current policy director for Circle around the world, said SVB was particularly important to the US economy, warning that "without a federal emergency plan, its failure would cause broader harm to business services, banks or entrepreneurs."

Disparte further added:

Like SilverGate, our team has been running to limit all exposures to banks. This includes the request for wire transfers made before SVB took over FDIC. The $3.3 billion exposure still exists-but we follow specific state and federal regulatory guidelines.

On-Chain data further indicate that Circle redeemed $1.4 billion within eight hours. In order to reduce their exposure, login password companies, including Coinbase and Jump Trading, redeemed about $850 million and $138 million USDC respectively.

Just two weeks ago, on Feb. 23, USDC Issuer Circle announced plans to increase its workforce by 25%-putting the cart before the horse.

On the timeline, Jeremy Fox-Geen, chief operating officer of Circle, shared his intention to go public, waiting for the market to improve. He added that the login password industry needed to maintain a higher distance from the Terra and FTX implosions, allowing public investors to reassess the future development of digital money business processes.