In order to fill the gap, the company plans to use corporate resources and external capital.

In the event that Circle Internet Financial does not receive the entire $3.3 billion cash reserve it holds at Silicon Valley Bank, it will “cover any shortfall” in the assets backing its stablecoin USDC.

Circle said in a blog post that it “will stand by USDC and cover any shortfall with corporate resources and external capital if necessary.”

The pledge came as crypto traders fretted over the value of USDC, a stablecoin pegged to the U.S. dollar but which slipped in value after Silicon Valley Bank collapsed. When the FDIC seized Silicon Valley Bank’s assets on Friday, Circle had held $3.3 billion in USDC’s cash backing. In a statement, Circle said it tried to move its assets out before SVB collapsed and expects the transaction to be settled by Monday, when U.S. banks resume normal operations.

As the FDIC issues IOUs (i.e., receivership certificates) and advances dividends to deposit holders, it is possible that SVB may not return 100%.

According to Coingecko, the stablecoin value fell as low as $0.88 in the last 24 hours before rebounding to $0.97 after the announcement.

USDC Reserves to be ‘covered’ by Circle, Sparking Stablecoin Rally

In order to fill the gap, the company plans to use corporate resources and external capital.

In the event that Circle Internet Financial does not receive the entire $3.3 billion cash reserve it holds at Silicon Valley Bank, it will “cover any shortfall” in the assets backing its stablecoin USDC.

Circle said in a blog post that it “will stand by USDC and cover any shortfall with corporate resources and external capital if necessary.”

The pledge came as crypto traders fretted over the value of USDC, a stablecoin pegged to the U.S. dollar but which slipped in value after Silicon Valley Bank collapsed. When the FDIC seized Silicon Valley Bank’s assets on Friday, Circle had held $3.3 billion in USDC’s cash backing. In a statement, Circle said it tried to move its assets out before SVB collapsed and expects the transaction to be settled by Monday, when U.S. banks resume normal operations.

As the FDIC issues IOUs (i.e., receivership certificates) and advances dividends to deposit holders, it is possible that SVB may not return 100%.

According to Coingecko, the stablecoin value fell as low as $0.88 in the last 24 hours before rebounding to $0.97 after the announcement.