By Elizabeth Howcroft and Rishabh Jaiswal
Stablecoin USD Coin lost its dollar peg and slumped to an all-time low on Saturday after Circle, the U.S. firm behind the coin, revealed that some of the reserves backing it were held at Silicon Valley Bank.
Circle has $3.3 billion of its $40 billion of USDC reserves at collapsed lender Silicon Valley Bank, the company said in aThe coin broke its 1:1 dollar peg and fell as low as $0.88 shortly after 0800 GMT on Saturday according to market tracker CoinGecko. It recovered slightly to trade around $0.90 by 1120 GMT.on Friday in the largest U.S. bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors.
Circle said in a tweet on Friday that it and USDC "continue to operate normally" while the firm waits for clarity on what will happen to Silicon Valley Bank depositors.Circle did not immediately respond to a request for comment about the dollar peg, sent outside of U.S. working hours.
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