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Circle Internet Financial, the issuer of USD Coin (USDC) stablecoin, has applied for regulatory approval in France, selecting the country for its European expansion. The firm has filed applications for becoming a licensed Electronic Money Institution (EMI) and a registered Digital Asset Service Provider (DASP) in France.
A multi-billion dollar emergency credit facility from American crypto exchange Coinbase to Circle Internet Financial recently came to light. The credit line was reportedly offered to the USDC issuer last week after the collapse of Silicon Valley Bank.
Crypto exchange Coinbase reportedly offered a $3 billion credit line to Circle, the crypto company that issues the USD Coin (USDC) stablecoin, in an effort to bring the stablecoin back to its $1 peg.
Coinbase reportedly agreed to offer Circle a $3.3 billion credit line to shore up USDC liquidity after SVB collapse.
Crypto News: As more information about the tragic weekend of the USDC depeg continues to surface, the newest development in the wake of the failure of Silicon Valley Bank is the introduction of a credit line with a value in the multi-billion dollar range. It has been reported that Coinbase made a massive offer of The post Did Circle Get A $3 Billion Credit Line From Coinbase To Get USDC Back To $1?
Coinbase reportedly offered a $3.3 billion credit line to Circle to ensure liquidity for USDC following the FDIC's decision to shut down Silicon Valley Bank.
Before the Silicon Valley Bank (SVB) crisis, the stablecoin USD Coin had captured about 70% of the on-chain transaction volume on Ethereum, indicating its popularity among the DeFi and NFT community.
Did the depegging reveal stablecoins' limitations, or was it a learning moment?
The stablecoin market has seen significant changes over the past few weeks — including the removal of over 7 billion USDC stablecoins from circulation following the depegging event on March 11.
"Financial institutions may reconsider adopting stablecoins to settle agreements involving tokenized securities out of concern over the coins' potential volatility,” Moody's said.
Turmoil in traditional finance spilled over into Bitcoin and crypto markets, forcing federal regulators to step in.
The popular stablecoin USD Coin (USDC) has seen outflows of around $3 billion over three days this week, issuer Circle said in a blog post on Thursday.
Cryptocurrency users flocked to DEXs, loaded with USDC, following the collapse of Silicon Valley Bank (SVB). A similar case is the FTX collapse, which led to a similar exodus from centralized exchanges as users feared they might lose access to funds during crises.
Trading firms were quick to jump on the USDC long trade over the weekend as the stablecoin slumped to $0.88 amid banking concerns in the U.S.
Until a week ago, USD Coin was seen as the world's safest stablecoin. BUSD, one of its chief rivals, was shut down last month by US regulators.
Bybit's trading volumes surged following the USDC de-peg and volatility
The collapse of FTX led to a similar exodus from centralized exchanges, as users worried they may lose access to funds during crises.
A phishing campaign falsely promising access to a new USDC DeFi trading platform emerged on social media on March 16.
After the weekend's depegging of the stablecoin, Circle, which issues USDC, has declared that substantially all the minting and redemption backlogs have been resolved.
USDC stablecoin investors panicked when Circle announced its exposure to the shuttered banks, and Circle's latest report on USDC Reserves and attestation from Deloitte, the global audit company, confirms the connection. However, in a new development, Circle reports almost clearing all minting and redemption requests for USDC.
Circle is working on adding more transaction banking partners.
Cryptocurrency investors have withdrawn a net $3 billion in Circle's USDC coin this week. Circle said on its blog Wednesday (March 15) evening that it had “cleared substantially all of the backlog of minting and redemption requests” for its coin, the second most popular cryptocurrency.
Circle says it has fulfilled “virtually all” of the redemption and minting requests for its USD Coin $1.00 stablecoin. Circle announced in a March 15 operating update that it has redeemed $3.8 billion USDC and minted $0.
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