Coinbase offered $3B backstop to Circle in bid to stabilize USDC

03/21 02:54

According to Fortune, details keep emerging about the chaotic weekend that followed the collapse of Silicon Valley Bank—including a plan by Coinbase to ride to the rescue of Circle after the USDC stablecoin broke its peg with the dollar following news that $3.3 billion of Circle's deposits were stranded at the failed bank. The person privy to the arrangement said that Coinbase offered an immediate line of credit to Circle that would have guaranteed full liquidity for USDC reserves, and ensured the stablecoin could be converted to U.S. dollars on the Monday morning following Silicon Valley Bank's collapse. The companies were on the verge of announcing the credit facility but, the same Sunday, banking regulators lifted the FDIC and dispelled the sense of crisis. Circle declined to comment on these events but does not deny them.
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