Stablecoins rally as Circle announces it will cover all USDC redemptions 1:1

quick take

• March 11th (Sat), Circle CEO Jeremy Allaire announced Circle has pledged to cover the shortfall in assets backing USDC if it does not receive the full amount of its $3.3 billion cash reserves held by Silicon Valley Banks.
• USDC is a stablecoin intended to be pegged to the U.S. dollar, but fell in value after the failure of Silicon Valley Bank.
• The value of the stablecoin fell to $0.88 before rebounding to $0.97 after the announcement.
• Circle said it would stand by USDC and bring in outside capital as needed to cover shortfalls using company resources.
• Other stablecoins such as Dai and Gemini USD have reacted to the news.

The Stablecoins backlash post first appeared on CryptoSlate when Circle announced it would cover all USDC redemptions at 1:1.