After depegging yesterday, USD Coin (USDC) rallied back to as high as $0.98 following news that its issuer Circle promised to cover any shortfall in its reserves amid the Silicon Valley Bank (SVB) crisis.
According to BeInCrypto data, USDC almost regained its $1 peg following Circle’s promise but has retraced to $0.95 as of press time. The stablecoin had lost over $6 billion of its supply on March 11 as investors feared it could crash.
However, the recent news from its issuer has returned some confidence in the asset, with its supply rising by around $2 billion to $38.7 billion at the time of press.
Circle Says it Would Cover Shortfall
In a March 11 statement, Circle said USDC would remain redeemable 1:1 against the U.S. dollar. It added that its liquidity operations would resume when banks open on March 13.
“As a practical matter, our teams are well prepared to handle significant…
