Coinbase offered Circle $3b credit line to repeg USDC
Cryptocurrency exchange giant Coinbase offered a $3 billion credit line to Circle, to support USD Coin to bring the stablecoin back to its $1 peg.
The latest development comes after USDC lost its peg against the dollar due to Circle's $3.3 billion exposure to Silicon Valley Bank which was taken over by the federal deposit insurance corporation.
Circle requested an emergency credit line to ensure the stability of USDC and Coinbase provided the credit line that would have covered the entire liquidity for USDC reserves and allowed the stablecoin to be converted to U.S. dollars after Silicon Valley Bank's collapse.
The de-pegging event occurred after Circle had planned to move its deposits out of Silicon Valley Bank just a day before the regulatory authority ordered the bank to close its doors.
It prompted a lot of fear and doubt among investors who rushed to withdraw their funds from the stablecoin causing it to de-peg from the U.S. dollar and trade at a price lower than $0.90.
Coinbase may be set up as an offshore until due to the increasing regulatory scrutiny in the United States. While Coinbase has not been confirmed yet.
Emilie Chol COO of Coinbase did mention during an earnings call that international expansion is going to continue to be a very core part of how we operate.
Coinbase exchange recently praised the U.K. for launching consultations on a new future financial services regulatory regime for crypto assets including its continued investment in supportive nations.
The live USD Coin price today is $0.998987 with a 24-hour trading volume of $6,266,537,367. USD Coin is down 0.07% in the last 24 hours. The current CoinMarketCap ranking is #5, with a live market cap of $35,330,831,685. It has a circulating supply of 35,366,664,823 USDC.
USD Coin price statistics the USD coin price change is $0.9987 and USDC 24 hour low is $0.9972 and 24h High is $1 with 3.07% Market dominance.