Crypto firm Circle says $3.3 billion USDC reserves to be fully available on Monday

Circle’s announcement comes after the US administration on Sunday stepped in with a series of emergency measures to shore up confidence after the failure of Silicon Valley Bank and New York-based Signature Bank threatened to trigger a systemic crisis.

Circle said it did not have any Stablecoin USD Coin (USDC) cash reserves at Signature Bank and that the token remained redeemable at 1:1 US dollar peg.

Further, the crypto firm announced an automated USDC minting and redemption through Cross River Bank, effective Monday, and said its expanded relationships also include USDC redemptions via BNY Mellon.

“Circle’s USDC operations will open for business, including with new automated settlement via our new partnership with Cross River Bank,” Chief Executive Officer Jeremy Allaire said in a tweet.

Stablecoins are cryptocurrencies designed to maintain a constant exchange rate with “fiat” currencies – those backed by a central government rather than a physical commodity such as gold – for example through a 1:1 U.S. dollar peg. USDC is the second-biggest stablecoin with a market cap of $37 billion.

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USDC lost its dollar peg and slumped to an all-time low on Saturday before recovering most of its losses when Circle assured investors it would honor the peg despite exposure to failed Silicon Valley Bank.Coinbase exposure

Cryptocurrency exchange Coinbase Global Inc has about $240 million in corporate cash balance with Signature Bank, it said in a tweet on Sunday, hours after the state regulators closed the New York-based lender.

“Due to FDIC’s hold on Signature’s transactions, we’re currently facilitating all client cash transactions with other banking partners,” the tweet added.

State regulators closed New York-based Signature Bank on Sunday, the third largest failure in US banking history, two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.

The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had $110.36 billion in assets and $88.59 billion in deposits at the end of last year, according to New York state’s Department of Financial Services.

All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and “no losses will be borne by the taxpayer,” the US Treasury Department and other bank regulators said in a joint statement.