Coinbase and Binance Halt USDC Conversions Amidst Fluctuating Dollar Peg
Cryptocurrency exchanges Binance and Coinbase have announced that they will temporarily suspend USDC conversions due to concerns over the collapse of Silicon Valley Bank. The move comes after California’s financial regulator shut down the bank on Friday, leading to fears that Circle, the company behind USDC stablecoin, held some of USDC’s cash reserves at the bank. USDC was originally launched by Centre, a joint venture between Coinbase and Circle. Binance cited “current market conditions” as the reason for the suspension, without naming Silicon Valley Bank. The exchange said it was taking a “normal risk-management procedural step” while monitoring the situation.