The CEO of Circle, Jeremy Allaire, declared in an official statement that USDC's liquidity operations will recommence as usual once banks open on Monday morning in the US. As a regulated payment token, USDC will continue to be exchangeable one-to-one with the US Dollar.

This announcement follows a de-peg of the stablecoin USDC. USDC's price dipped as low as $0.87 before stabilizing at $0.97 at the time of writing. USDC issuer Circle holds $3.3 billion of its reserve at Silicon Valley Bank.

"USDC is 100% collateralized with a combination of cash and US Treasuries. " Circle wrote in the statement. "Specifically, USDC is currently collateralized 77% ($32.4B) with US Treasury Bills (with a three month or less maturation period), and 23% ($9.7B) with cash held at a variety of institutions, of which SVB is only one.  "

Circle affirmed that it would utilize its corporate resources to compensate for any shortage in case SVB fails to return the entire $3.3 billion cash reserves, as the firm stated:

"However, it is also possible that SVB may not return 100% and that any return might take some time, as the FDIC issues IOUs (i.e., receivership certificates) and advanced dividends to deposit holders. In such a case, Circle, as required by law under stored-value money transmission regulation, will stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary."