Last week, the 16th largest bank in the United States, Silicon Valley Bank (SVB), was intervened by banking regulators causing uncertainty in the market. This uncertainty also affected the cryptocurrency market, specifically Circle and the USDC stablecoin, as a small but significant part of its reserve was held in SVB.
Despite Circle guaranteeing the stability of USDC, the market reacted negatively causing a drop in the value of USDC. In response to this situation and in an effort to protect their users from volatile market trading, certain platforms, including one of our providers, decided to pause operations with USDC. This impacted our ability to offer cryptocurrency withdrawals to USDC, ETH, and BTC.
However, today the market is responding positively to the measures taken by US regulators, and USDC’s parity to the dollar has been validated. We expect all of our services to be restored soon, we will let you know as soon as they are back online. You can find more information regarding Circle and USDC here: $3.3 Billion of USDC Reserve Risk Removed, Dollar De-peg Closes (circle.com)
We will continue to monitor the situation of the US banking system, that of our providers, and the integrity of the USDC stablecoin closely. We will communicate any changes that arise in a timely manner. As always, our priority will be the best interest of all our users and community.