USDC stablecoin getting healthy buy support despite the downfall of the Silicon Valley Bank, after the notice issued by the US financial watchdogs.
In the 10 days of the time frame, a total of three banks failed to provide healthy financial services, as many of their crypto customers failed to survive in 2022. These struggling banks are Silvergate, Silicon Valley, and Signature Bank. A few recent reports claimed that First Republic Bank is very close to joining the list of failed banks.
On 12 March 2023, The three heads of the US financial regulatory bodies Federal Reserve Chairman Jerome Powell, U.S. Treasury Secretary Janet Yellen, and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg issued a notice on the failure of the crypto-friendly US banks and assured all the Bank depositors that they will not face any loss.
To revive these banks, all these agencies will work together to revive the failed US banks e.g Silicon Valley Bank. These agencies also conducted a brief discussion on this matter with the Joe Biden administration to make better decisions.
Bank failure, crypto service challenges
As most of the crypto-friendly banks failed to survive under the current bad situation and these are creating several challenges for the crypto companies.
Many crypto companies are failing to transfer money easily with financial institutions.
A very big negative impact had been seen with the USDC stablecoin issuer company Circle.
Silicon Valley Bank (SVB) holds 25% of the total reserves of Circle and this situation created a very bad sentiment for the USDC holders.
Even in the current situation, USDC stablecoin is trading below 1.28% from its $1 pegged value.
Read also: Brave browser supports crypto assets sell for fiat
US financial watchdogs confirm no depositors will face loss amid bank failures
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