USDC and DAI temporarily anchored due to Bank of Silicon Valley incident

03/11/2023 23:48 • Tech Ticker • 135 views

On March 11, it was reported that USDC and DAI were temporarily slightly anchored due to the Bank of Silicon Valley incident. According to the market, USDC is temporarily quoted at US $0.9952 and DAI is temporarily quoted at US $0.9963. Curve platform stable currency 3pool has a slight proportion tilt, with USDT accounting for 5.95%, USDC and DAI accounting for 44.56% and 49.48% respectively. According to the audit report of Circle in January this year, Circle has reserves in many regulated financial institutions in the United States, including Silicon Valley Bank and Silvergate. This report is reviewed and certified by Deloitte. At present, Circle has not responded to the risk exposure of Silicon Valley banks.

The USDC and DAI have temporarily been slightly anchored, and Circle has not responded to the bank risk exposure in Silicon Valley

Analysis based on this information:

The message reports on the temporary anchoring of two stablecoins USDC and DAI due to the Bank of Silicon Valley incident. The incident has caused a slight proportion tilt in the Curve platform stable currency 3pool, with USDT accounting for 5.95%, USDC accounting for 44.56%, and DAI accounting for 49.48%.

Stablecoins, like USDC and DAI, are cryptocurrency assets that are pegged to a stable asset, such as the US dollar. They are designed to maintain a stable value, making them attractive to investors and traders who want to avoid the volatility of traditional cryptocurrencies like Bitcoin. However, the stability of stablecoins depends on the underlying assets that anchor them.

The Bank of Silicon Valley incident has raised concerns about the risk exposure of the stablecoin issuers, including Circle, the issuer of USDC. Circle has reserves in several regulated financial institutions in the US, including Silicon Valley Bank and Silvergate. The audit report of Circle in January this year, reviewed and certified by Deloitte, confirms that Circle has reserves in regulated financial institutions. However, Circle has not responded to the risk exposure of Silicon Valley Bank.

The temporary anchoring of USDC and DAI is an indication of the concern among investors and traders about the stability of these stablecoins. The slight proportion tilt in the 3pool stable currency is also a reflection of this concern.

In conclusion, the Bank of Silicon Valley incident has raised concerns about the risk exposure of stablecoin issuers and has led to the temporary anchoring of USDC and DAI. The stability of stablecoins depends on the underlying assets that anchor them, and any disruption in these assets can affect the value of stablecoins. The response of Circle to the risk exposure of Silicon Valley Bank will be closely watched by investors and traders in the cryptocurrency market.

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