Circle, a leading global crypto finance company, has announced that it has partnered with Cross River Bank to produce and redeem USD Coin (USDC), its flagship stablecoin pegged to the US dollar. Cross River Bank is a recognized leader in providing banking services to fintech and crypto firms, including Visa, Coinbase, and Robinhood.
Circle has partnered with Bank of New York Mellon to provide redemption services for USDC. This will help to ensure that users can easily and quickly exchange their USDC for traditional currency. In addition, Circle has expanded its relationships with other banking partners to provide additional support for USDC redemption.
After a harrowing weekend that saw Circle’s flagship USDC stablecoin break its peg to the dollar, falling below $0.90 early on Saturday, a series of moves by banks and regulators restored confidence in the token. At the time of publication, USDC has recovered and trades at $0.99.
Circle reassured its customers that their USDC funds were safe over the weekend, announcing that it would complete the transfer of the remaining SVB cash to BNY Mellon. Liquidity operations for USDC will resume at banking open on Monday.
Circle’s announcement also noted that it had no exposure to Silvergate, the crypto-friendly bank that voluntarily liquidated its holdings as part of a takeover process by federal regulators. This weekend’s USDC turmoil was part of a broader financial catastrophe that started due to the collapse of SVB, the 16th-largest bank in the United States and a financial pillar of the tech and venture capital world. This weekend’s USDC turmoil was just the latest development in a broader financial catastrophe that started due to the collapse of SVB, the 16th-largest bank in the United States and a financial pillar of the tech and venture capital world.
A panic ensued when the failure of SVB triggered a freeze on the ability of thousands of companies, including Circle, to access billions of dollars in deposits. However, the Federal Reserve and other agencies stepped in to calm markets by announcing that depositors at SBV would be made whole.