Cryptocurrency exchange Coinbase has reportedly offered a $3 billion line of credit to Circle, the cryptocurrency issuer of the US dollar (USDC) stablecoin. in try to bring stablecoin back to $1 peg.
the latest development It comes after USDC lost its currency peg to the United States dollar Due to Circle’s exposure to the $3.3 billion Silicon Valley bank, which was seized over by the Federal Deposit Insurance Corporation (FDIC).
Coinbase allegedly offered $3 billion safety net
According to reports, the department has requested an emergency line of credit for ensure stability of USDC and Coinbase introduced the credit line that would have covered the entire liquidity for USDC reserves allowed stablecoin To be converted into US dollars after the Silicon Valley Bank failure.
Disengagement event I signed after Cercle had planned it move its deposits out of Silicon Valley Bank just days ago regulatory I ordered the salad bank to close its doors.
I paid too much of Fear, Uncertainty and Doubt (FUD) among investors, who They rushed to withdraw their money from stablecoincausing it to disengage from the United States dollar And trade in price Less than $0.90.
like of now , price of USDC is back to $1 peg with a market hat of $35 billion.
Coinbase plans United States Navy unit regulatory audit
On March 17th, cryptocurrency.news I mentioned that Coinbase has set up unit freely due to increase regulatory audit of Industry in The United States report indicates that global Transactions will be routed through new facility, and Coinbase has yet to confirm the report.
While Coinbase has yet to confirm the report, the company’s COO Emilie Choi mentioned it during earnings call thatinternational Expansion will continue to be a very essential part of how We are working. ”
Choi agreed for Recently regulatory developments in Europe and the UK revealed that Coinbase plans to continue investing in those jurisdictions.
The stock exchange recently praised the UK for Consulting launch on a new future financial services regulatory regime for encryption assetsindicating continued investment in Supporting countries.
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