At the end of May, when everyone was watching the U.S. debt ceiling drama, Blackrock, the manager of Circle stablecoin reserves, precautiously moved the holdings from T-bills to commercial banks. Now that the storm alert has passed, T-bills have started to appear on the balance sheets again.
Circle is finding its way past a rough year. In the last couple of months, the FinTech company launched USDC on Arbitrium, Euro Coin on Avalanche and introduced its own cross-chain bridge protocol.
Circle is finding its way past a rough year. In the last couple of months, the FinTech company launched USDC on Arbitrium, Euro Coin on Avalanche and introduced its own cross-chain bridge protocol.
At the end of May, when everyone was watching the U.S. debt ceiling drama, Blackrock, the manager of Circle stablecoin reserves, precautiously moved the holdings from T-bills to commercial banks. Now that the storm alert has passed, T-bills have started to appear on the balance sheets again.
The move makes Gibraltar-based Xapo the first fully licensed bank in the world to offer USDC on-and off-ramps as a fast, free, 24/7 alternative to the expensive and slow SWIFT system used for international payments.
USDC depeged from USD after US Silicon Valley Bank collapsed. Exchanges paused their conversion as users rushed into other assets. Now the stablecoin has got back to 1:1 ration, but what’s done is done…
The collapse of Silicon Valley Bank (SVB) affected, among others, the USDC’s reserves and this “blue-chip” stablecoin has lost its peg to the dollar. Ironically, the only decentralized unicorn stablecoin project, MakerDAO is now in trouble due to its “reinforcing” USDC-backed component.
