After almost a week of turmoil, Jeremy Allaire, the chief executive officer (CEO) of USDC stablecoin issuer Circle, said the firm is set to resume its operations this Monday morning. Taking to his Twitter handle, Jeremy said plans to resume operations would come alongside automated settlement via its new partnership with Cross River Bank.
Circle’s USDC operations will open for business on Monday morning, including with new automated settlement via our new partnership with Cross River Bank. https://t.co/ybkSEedzrC— Jeremy Allaire (@jerallaire) March 13, 2023
Just like most firms in the digital currency ecosystem, Circle said it has major exposure to the now-collapsed Silicon Valley Bank (SVB). According to an update shared, the firm holds $3.3 billion in deposits at SVB, a sum the firm now believes that U.S. regulators will help to recover with the promises made to repay depositors.
The struggles associated with the collapse of SVB sent shockwaves into not just the broader tech and financial world but also into the crypto ecosystem. USDC depegged significantly from $1 last week but has been repegged after much effort from Circle and its partners in the industry.
Per an earlier report by U.Today, the depegging of USDC and the woes of the firm were considered good for the industry, as investors were now turning to Bitcoin (BTC) as a refuge.
Path to recovery
As a business that operates in an industry with a high level of volatility, Circle has done the best it can to reassure investors of the safety of their funds. The stablecoin is now priced at $0.9916, but the firm said it will still be redeemable 1:1 with the United States Dollar.
Bitcoin (BTC) reclaimed $21,000 over the weekend amid the SVB chaos and is changing hands at $22,451.92, up 9.25% over the past 24 hours after plunging as low as $19,628.25 over the trailing seven-day period. The recovery of Bitcoin and the assurances from Circle are likely to position the industry for a more sustained short-term recovery.