Block Journal
No Result
View All Result
  • Login
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianopt Portuguêsru Русскийes Españolth ไทยzh-CN 简体中文hi हिन्दीja 日本語
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine
Magazine
Newsletter
  • Trending Now
  • Bitcoin
  • Altcoin
  • Ethereum
  • Analysis
  • Blockchain
  • Metaverse
  • NFT
  • DeFi
  • Web3
  • GameFi
  • ICO
  • Legal
  • Security
Block Journal
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianopt Portuguêsru Русскийes Españolth ไทยzh-CN 简体中文hi हिन्दीja 日本語
No Result
View All Result
Block Journal
No Result
View All Result
  • News
  • Crypto
  • Markets
  • Investing
  • Videos
  • Charts
Home Crypto Analysis

USDC de-pegs, Kraken CEO wonders if the market is losing trust in US products

News Room by News Room
March 11, 2023
in Analysis
Reading Time: 2 mins read
0 0
A A
0

By Mar. 11, USDC, a stablecoin, de-pegged, falling to as low as $0.89 during the Asian session, trackers reveal.

USDC de-pegs after Silicon Valley Bank folds

The de-pegging of the USDC, theoretically meant to track the value of the USD, regardless of market volatility, is why Jesse Powell, the co-founder and CEO of Kraken, is wondering if the broader market is beginning to lose faith in United States-based products.

$USDT “depegged” to the upside, worth 1.06 $USD and 1.08 $USDC today. $USDC dipped to 0.89 $USD. You have to wonder if the market is losing faith in US-homed financial products.

Board: https://t.co/ndnGPaSwmm pic.twitter.com/Fi6Fh5mSQk

— Jesse Powell (@jespow) March 11, 2023

With USDC under pressure and users scrambling to exit to other mainstream stablecoins, USDT broke its peg with USDC.

Earlier today, USDT traded at a premium versus USDC, reaching as high as 1.08 USDC.

At that time, the USDC had sunk to as low as $0.89 versus the greenback. The peg recovered, reaching $0.96 as of writing on Mar. 11 but is still below the ideal $1.

Several contributing factors made the USDC de-peg. The main one was news that Circle had exposure to Silicon Valley Bank (SVB). Circle shared a tweet earlier today saying it had $3.3b stuck at SVB. This amount represented roughly 8% of their total reserves of approximately $40b.

SVB collapsed after it failed to raise funds, triggering a bank run and a liquidity crisis. It has since been placed under the United States Federal Deposit Insurance Corporation (FDIC).

The agency will now liquidate the bank’s assets and reimburse them to clients, including depositors and creditors.

Stablecoin is fully backed

USDC is issued by Center, a consortium that’s founded by, among other entities, Circle.

Circle claims to be a fully regulated Fintech “re-imagining finance.” Headquartered in the United States, Center, the issuer, is regulated and complies with laid-down rules.

As part of their transparency efforts and to reassure token holders, the issuer issues audited reports and monthly attestations.

Audited reports confirming whether USDC coins are fully backed are audited by the United States Securities and Exchange Commission (SEC). Meanwhile, attestation reports comply with standards the American Institute of Certified Public Accountants (AICPA) sets.

The latest report showed that there are 43,480,317,534 USDC in circulation as of Jan. 17, with a fair value of $43,527,811,961, meaning the token was sufficiently backed.



Read the full article here

ShareTweetSharePinShareShareSend

Related News

Prices May Skyrocket For These Top 3 China Coins; Hong Kong Opens Crypto Trading
Analysis

Prices May Skyrocket For These Top 3 China Coins; Hong Kong Opens Crypto Trading

May 30, 2023
Users accumulating stablecoins as bitcoin and crypto prices rally
Analysis

Users accumulating stablecoins as bitcoin and crypto prices rally

May 30, 2023
Solana smashes $20 barrier as active users surge; What’s next for SOL price?
Analysis

Solana smashes $20 barrier as active users surge; What’s next for SOL price?

May 30, 2023
Dogecoin (DOGE) Price Prediction: What to Expect in the Next 48 Hours
Analysis

Dogecoin (DOGE) Price Prediction: What to Expect in the Next 48 Hours

May 30, 2023
Dogecoin Chart Pattern Suggests Volatility Explosion Ahead
Analysis

Dogecoin Chart Pattern Suggests Volatility Explosion Ahead

May 30, 2023
4 Cryptos That Could Drop to New Lows in June
Analysis

4 Cryptos That Could Drop to New Lows in June

May 30, 2023
Solana (SOL) Sees Bullish Revival, Here’s What May Be Different This Week
Analysis

Solana (SOL) Sees Bullish Revival, Here’s What May Be Different This Week

May 30, 2023
Bitcoin, Ethereum Technical Analysis: BTC Above $28,000 as Biden Announces Debt Ceiling Deal
Analysis

Bitcoin, Ethereum Technical Analysis: BTC Above $28,000 as Biden Announces Debt Ceiling Deal

May 30, 2023
Investor Jim Rogers Predicts Unprecedented Bear Market
Analysis

Investor Jim Rogers Predicts Unprecedented Bear Market

May 29, 2023

Discussion about this post

Latest News

Volatility Ahead as Bitcoin (BTC) Set to Move Out of Equilibrium: Glassnode

Volatility Ahead as Bitcoin (BTC) Set to Move Out of Equilibrium: Glassnode

May 30, 2023
The erosion of the Lira’s value will continue – Commerzbank

The erosion of the Lira’s value will continue – Commerzbank

May 30, 2023
Stocks to Watch: Aehr Test Systems, Roku, Cingulate

Saab Gets $277.5 Mln Ammunition Order From Swedish Defense Agency

May 30, 2023
Is Bitcoin Headed For $34,000? Large Buyer’s Purchase May Signal Yes

Is Bitcoin Headed For $34,000? Large Buyer’s Purchase May Signal Yes

May 30, 2023
Measuring Lightning

Measuring Lightning

May 30, 2023
ADVERTISEMENT

Popular

  • EU states back ban on destruction of unsold clothing

    EU states back ban on destruction of unsold clothing

    0 shares
    Share 0 Tweet 0
  • USD/CAD Price Analysis: Bears target a move to test 1.3570

    0 shares
    Share 0 Tweet 0
  • PBOC sets USD/CNY reference rate at 7.0575 vs. 7.0760 previous

    0 shares
    Share 0 Tweet 0
  • A stagflationary environment in the US and the Eurozone – Natixis

    0 shares
    Share 0 Tweet 0
  • Blockchain Essential for Democratizing AI, Says SingularityNET COO 

    0 shares
    Share 0 Tweet 0
Block Journal

Block Journal is the world’s leading source in blockchain news and updates. Follow us to stay up-to-date with all you need to know in web3.

LEARN MORE »

Recent Posts

  • Volatility Ahead as Bitcoin (BTC) Set to Move Out of Equilibrium: Glassnode
  • The erosion of the Lira’s value will continue – Commerzbank
  • Saab Gets $277.5 Mln Ammunition Order From Swedish Defense Agency

Trending Topics

Altcoin Analysis Bitcoin Blockchain Commodities Crypto DeFi Ethereum Forex Futures GameFi ICO Investing Legal Markets Metaverse News NFT Security Stocks Uncategorized Videos Web3

Get Informed

The most important crypto and finance news and events of the day

Be the first to know latest important news & events directly to your inbox.

By signing up, I agree to our TOS and Privacy Policy.

  • About
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact

Copyright © 2023 Block Journal - Created by Sawah Solutions.

No Result
View All Result
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine

Copyright © 2023 Block Journal - Created by Sawah Solutions.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.