On Saturday, March 11, 2023, crypto proponents are concerned that several stablecoin assets have been de-pegged from parity of $1. USDC, the second largest stablecoin issued by Circle Financial, fell below $0.90 to a low of $0.877 per coin. Additionally, about five other stablecoins fell below USD parity during the trading session early Saturday morning (ET).
Major Crypto Exchanges Suspend USDC Trading As Concerns Grow
March 11, 2023, stablecoin assets are having a rough day after Circle Financial announced Its $3.3 billion cash-backed US dollar coin (USDC) was held at Silicon Valley Bank (SVB). The news unpegged USDC from the US dollar, dropping to $0.877 per coin on Saturday. As of 7:45 am ET, USDC is currently trading at $0.91 per unit, up 3% from a low of $0.87.
We are temporarily suspending Ethereum and Polygon purchases using USDC. We also paused loading BitPay cards in the app. Further updates follow here.
— BitPay (@BitPay) March 11, 2023
Following USDC’s de-pegging, several major cryptocurrency exchanges including Binance and Coinbase have suspended USDC trading. “Binance has temporarily suspended the automatic conversion of USDC to BUSD in relation to the current market conditions, especially the high volume of inflows and increased burden to support the conversion,” Binance said. increase. murmured“This is a normal risk management procedure to be taken while monitoring the situation.”
coin base said: “We are temporarily suspending conversion of USDC:USD during weekends when banks are closed. It will rely on US dollar transfers, and we plan to resume conversions once banks open on Monday.” Crypto payment processor Bitpay also pause USDC payments and debit card loading.
Singapore-based cryptocurrency exchange Crypto.com also suspended USDC deposits on March 11. USDC withdrawals are still possible,” the company said on Saturday. “We will continue to assess the situation and plan to resume USDC trading as soon as possible.”
USDC’s de-pegging caused a ripple effect of five different stablecoin project de-pegging issues, including GUSD, DAI, FRAX, USDP, and USDD. FRAX is currently trading at $0.91, USDD at $0.94, USDP at $0.95, DAI at $0.92 and GUSD at $0.97. Tether (USDT), the largest stablecoin by market cap, has remained within the $0.99 to $1 range since SVB began issuing.
What do you think about the challenges facing stablecoins today? Share your thoughts on this topic in the comments section below.
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