After the company discloses that it has SVB exposure of $3.3 billion, stablecoin USDC breaks the dollar peg:

 The USD Coin from US cryptocurrency company Circle lost its dollar peg and hit a record low early on Saturday.

The business said that it has over 8% of its $40 billion in reserves deposited at the defunct lender Silicon Valley Bank.

According to CoinDesk data, although USDC is intended to trade at $1, on Saturday it dropped below 87 cents.

On March 10, 2023, a Silicon Valley Bank facility in San Francisco, California, displays its logo. Krystal Hu for Reuters

On March 10, 2023, a Silicon Valley Bank facility in San Francisco, California, displays its logo.

Workers | Reuters

Circle's USD Coin, a cryptocurrency issued by the United States, lost its dollar peg and hit a record low early on Saturday.Reserves totaling $40 billion, 8% of which were held in the defunct lender Silicon Valley Bank.

The virtual currency USDC is referred to be a stablecoin, which indicates that its value is expected to be tied to a standard currency. According to CoinDesk data, although USDC is intended to trade at $1, on Saturday it dropped below 87 cents.

The greatest U.S. banking collapse since the 2008 financial crisis, regulators shut down SVB on Friday and seized its money. After shocking investors late on Wednesday with the news that it needed to raise $2.25 billion to strengthen its balance sheet, the company's dramatic implosion got underway. What came next was the swift demise of a reputable bank that had developed with its tech clientele.

In Circle stated in a tweet on Friday that it still has $3.3 billion in SVB reserves. The corporation demanded that the bank remain open and declared that it will abide by regulators' instructions.

As FTX abruptly collapsed last year, the cryptocurrency sector is still cleaning up the pieces, and USDC's departure from the dollar may portend further problems. Like banks, stablecoins are susceptible to attacks.

According to a California regulatory filing, SVB customers withdrew a stunning $42 billion in deposits by the end of Thursday. According to the statement, by the end of business that day, SVB had a negative cash balance of $958 million and was unable to get enough collateral from other sources.

If USDC holders get alarmed or believe there If they don't have enough cash on hand, they can rush to sell or trade their coins.

Requests for comment from Circle were not immediately answered.