There’s no need to panic about the USDC depegging
Join Our Telegram channel to stay up to date on breaking news coverage Because of worries over the impending destabilization of USDC, a stablecoin backed by US dollars, the cryptocurrency sector is currently in a state of worry. In the beginning, it’s important to emphasize that Silicon Valley Bank (SVB), which is in charge of keeping the money supporting USDC, apparently has enough assets to cover all withdrawal requests. SVB has over $209.0 billion in assets and roughly $175.4 billion in deposits as of December 31, 2022, according to data from the Federal Deposit Insurance Corporation (FDIC). Nonetheless, despite the impressive asset base, questions remain over the liquidity of SVB’s book and the estimated percentage of a haircut in the event that the bank suffered large losses. This uncertainty results from the fact that the bank’s underlying assets are opaque and that it is unclear how dangerous or illiquid they may be. As a result, there is a chance that...