USDC issuer Circle has vowed to cover any gap in the stablecoin’s reserves if they do not receive the full $3.3 billion held in collapsed Silicon Valley Bank. In a blog post on Saturday, Circle stated it is willing to use corporate resources, potentially including external capital, to rectify any shortfall in the USDC reserves exposed to SVB. On Friday, SVB went into receivership under the Federal Deposit Insurance Corporation (FDIC). Circle expects the FDIC to permit previously initiated transactions to settle as usual, adding that USDC liquidity will resume as banks open on Monday. Additionally, Circle emphasised that the Deloitte audit confirms that the stablecoin remains in good standing.
