Silicon Valley Bank’s (SVB) failure is front page news, and last week Circle notified the market that it had $3.3 billion in collateral for its USDC stablecoin held in custody there. Crypto traders reacted by selling USDC, forcing it down to 88% of its value relative to collateral holdings. In money market terms, this is breaking the buck. No one should be surprised about what happened – we wrote up the problem in our October 2022 report on stablecoins and Central Bank Digital Currencies.
This content requires a Finadium subscription. Articles with an unlocked symbol can be accessed with free registration. Log in or create a free account by signing up here..
![](https://finadium.com/wp-content/uploads/2022/08/USD-Coin-300x187.jpg)