Coinbase’s USDC To USD Conversion Service Will Be Suspended, Intentions To Resume On Monday

Key Points:

• The service that converts USDC to USD will not be available until Monday due to a temporary suspension.
• The news that the value of USDC might drop below $0.94 during the next day could have an effect on the performance of Coinbase.

Coinbase recently stated on their official Twitter that they would cease their USDC to USD conversion service.

Coinbase said on March 11 that it will stop USDC-USD conversion while banks are closed on weekends. Conversions rely on US dollar transfers cleared by banks during normal business hours during periods of strong exchange activity. Coinbase intends to resume switching services when banks reopen on Monday. Users’ assets are secure and may be transferred at any moment on the chain.Furthermore, the company emphasized that the platform users’ assets are safe and ready for on-chain sends.

The announcement that USDC may depreciate to $0.94 in 24 hours may have an impact on Coinbase’s performance. Users have agreed to this news after Circle recently announced that the company still has over $3 billion USDC collateral on Silicon Valley Bank, accounting for 8.25% of total assets. USDC will receive $ 40 billion in collateral, well beyond earlier estimates.

Circle added that it will continue to monitor the situation and how the US government handles the asset withdrawal. The sudden demise of Silicon Valley Bank, the 16th largest commercial bank in the United States with assets of more than $200 billion USD, has received the greatest attention in the US stock market and cryptocurrency sector in the last 24 hours.

As crypto investors flock to USDT, both USDC and BUSD suffer substantial depreciation. The USDC price has dropped to $0.95 (at the time of writing), its lowest level since the stablecoin’s launch in 2018. The fall of Silicon Valley Bank is the second greatest in US financial industry history, and the most severe since the 2008 financial crisis.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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