Whereas short-term, the pause speaks to the chaos that is roiled the crypto business’s second-largest stablecoin within the wake of Silicon Valley Financial institution’s demise. All day Friday crypto merchants speculated on the soundness of USDC and redeemed $1.6 billion of the stablecoin, reducing its whole provide. Circle counted on Silicon Valley Financial institution as a parking spot for $3.3 billion of money backing the $40 billion USDC; the destiny of that money is now unsure, as SVB has been seized by the FDIC.
