Main navigation

Circle Business Operations to Resume Monday Morning: CEO

Mon, 03/13/2023 - 08:15
article image
Godfrey Benjamin
Jeremy Allaire assured investors of safety of their funds amid SVB chaos
Circle Business Operations to Resume Monday Morning: CEO
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

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.

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.

Ripple's CTO Guarantees Update on SVB Exposure: Details

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.

article image
About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.