As investors went home on Friday to digest the collapse of two US banks in one week, the consequences of their failure began to appear. Throughout the day, markets worked through the operational challenges SVB
VB
clients would face with day-to-day operations such as making payroll and paying bills. Among the various PR and Form 8-K releases earlier in the day, Circle Internet Financial announced that $3.3 billion of its roughly $40 billion USD Coin (USDC
USDC
) reserves were held at Silicon Valley Bank.
Late Friday night, Coinbase
COIN
announced that it would suspend USDC conversions. By early Saturday morning, an On-Chain “run on the bank” was taking place. In early Saturday morning trading, USDC depegged from its $1 peg— trading to as low as $0.87 before rebounding to $0.92 at 7:00 am ET.
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