USDC, crypto rallies on news that SVB, Signature Bank deposits are safe
Quick Take
- Stablecoin USDC was trading at $0.99 after news that its reserves held at SVB are safe.
- Crypto markets rallied after regulators said both SVB and Signature Bank reserves would be returned.
USDC nearly regained its peg and cryptocurrencies rallied on the news that all Silicon Valley Bank and Signature Bank deposits will be fully returned to customers.
The stablecoin was trading at $0.99 as of 7:37 pm ET on Sunday after losing its peg on Friday after its issuer Circle announced that it had $3.3 billion of USDC reserves stuck at SVB.
Circle Chief executive Jeremy Allaire said on Twitter that "100% of deposits from SVB are secure and will be available at banking open tomorrow."
Bitcoin, which has been trading under $21,000 since Thursday, was up 7.7% today and rose to just over $22,000 as regulators announced they would also be shutting down Signature Bank.
Meanwhile, Ether rose to $1,590 and was up 7.9% in the last day.
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