Coinbase suspending USDC:USD conversions over the weekend
USDC is managed the Centre consortium, which was founded by Circle and includes Coinbase as a member.Circle held around $3.3 billion in Silicon Valley Bank, leading to a run on USDC which resulted in it trading for as little as $0.95 on some exchanges today (Mar 10, 2023). This represents around 30% of USDC's cash reserves and 7% of its total reserves. The balance of reserves are held in T-Bills, which are liquid and typically can only be traded during market hours. Coinbase itself has around $2B of USDC on hand. Circle's rumored exposure to Silvergate's collapse is also a concern.If more than $7.8B of USDC were to be liquidated over the weekend, USDC would be effectively insolvent. Freezing trades until the market reopens limits this. USDC should rapidly stabilize due to being backed by very liquid hard assets, but it will probably lose significant marketshare to Tether.UPDATE: USDC Liquidity pools on other exchanges are becoming completely drained, pulling down the peg.
https://www.reddit.com/r/CryptoCurrency/comments/11oaz39/coi...