USDC Re-Peg waiying room

[Anonymous No.54039393]

There is $43.1 billion of USDC outstanding in the market, $43.2 billion of assets in Circle's possession held at a number of intermediaries. Of this $43.2 billion, $11.4 billion is in cash, with the remainder held in US Treasury Bills (mainly at BNY Mellon and BlackR).

Of the $11.4bn, some of it is/was held at SVB which was placed under the responsibility of the FDIC (an independent agency of the US government whose main responsibility is to guarantee bank deposits made in the US) on Friday.

https://www.fdic.gov/news/press-releases/2023/pr23016.html

According to the information we have, Circle had $3.3 billion held at SVB. This money is now frozen until a resolution is reached by the FDIC.

$3.3 billion of the $43 billion in outstanding collateral represents a 7.7% exposure of the USDC collateral that is now illiquid.The last bank of this size to be in this situation was Washington Mutual in 2008 (weighing over $300bn vs $200bn for SVB).
Did Washington Mutual's customers lose money back then? No. JP Morgan absorbed the bank.

Whatever one may say, and whatever one may think, the FDIC is used to this kind of situation, and the agency has become "pretty good at it". It's no coincidence that they picked up the case on a Friday. That's what they always do by having the wk to find a buyer. The objective is to announce a resolution plan on Monday, and to avoid a contagion. The strong USDC depeg is mainly due to the fact that several companies have paused the conversion between the USDC and the $. This is blocking the arbitrage operations that are usually used to bring the USDC back to its theoretical value, i.e. $1.

[Anonymous No.54039421]

>>54039393
Long story short: a big fat dildo in my ass

[Anonymous No.54039427]

Tick Tock. Im coming to clapp that bussy. Either take your loss now or be prepared to be a casualty in the next leg.

[Anonymous No.54039453]

FUD of all the people who don't understand much, and who say more or less anything on Twitter, and we end up in the situation we are in now.

The worst-case scenario (unlikely, but possible) would be that in the next few days the USDC empties completely and that only the $3.3bn locked in SVB remains. A USDC would then be an IOU on the resolution process started by the FDIC on Friday.
Why would EURC also be depegged? SVB didn't have EURO as far as I know

[Anonymous No.54039468]

/biz/ is now officially just a FUD board.

[Anonymous No.54039582]

>>54039453
So circle is getting btfo’d

[Anonymous No.54039696]

>>54039453
Its FUDD to retards till its historical fact. Get fucked globohomo shill. But hey zher, you could always ask yoir tranny zherfriend to rewrite histroy for you in a few years so you have that going for you.

[Anonymous No.54041560]

told you retards