USD Coin (USDC) is struggling to maintain its peg to the US dollar after revelations that some of the cash backing the top stablecoin is stuck in Silicon Valley Bank.
The Boston-based firm says $3.3 billion of the $40 billion backing USDC is locked in the collapsed bank, which is now controlled by the FDIC.
The revelation triggered a mass sell-off of the crypto asset, sinking the coin’s market cap by $6.3 billion overnight, with the coin trading at $0.91 at time of publishing.
Circle is joining a long list of companies who are calling for the US government to step in and save the bank, which is home to more than 2,500 venture capital firms.
“Like other customers and depositors who relied on SVB
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