Cryptocurrency stabilises after SVB fallout

Cryptocurrency stabilises after SVB fallout

LONDON - Major cryptocurrencies stabilised on Monday, after the US authorities announced plans to limit the fallout from the collapse of Silicon Valley Bank SVB and the issuer of the USD Coin stable coin said it remained redeemable with the dollar.

After the failure of SVB threatened to trigger a wider financial, US authorities launched emergency measures on Sunday to shore up confidence in the banking system, and said SVB customers would have access to their deposits from Monday.

USDC recovered to US $0.9917, up from a record low of US $0.87 hit on Saturday, far below its intended peg of 1:1 against the dollar. The fall was caused by concerns about the exposure of Circle — the US firm that issues USDC to SVB.

The top cryptocurrencies fell by 0.3 per cent to US $22,125 on Monday morning, but was up around 8 per cent from Sunday's lows.

Jeremy Allaire, CEO of USDC issuer Circle, said in a tweet on Sunday that the company's US $3.3 billion USDC reserve deposit - about 8 per cent of its total - would be fully available when US banks open on Monday.