USDC gains strength in March banking crisis: Circle CEO[Consensus 2023]| coindesk JAPAN

Stablecoin USD Coin (USDC) has emerged strong and safe from the March banking crisis, Jeremy Allaire, CEO of issuer Circle Internet Financial, said Wednesday.

The USDC, which has become an important vehicle for moving funds in the cryptocurrency industry, temporarily lost its dollar peg in the aftermath of the bank’s bankruptcy in mid-March, as it held its reserves with the Silicon Valley Bank. . Although Dolbeg recovered quickly, the event spooked investors and led to a large outflow of funds from the USDC.

“We have weathered this crisis successfully. We have really upgraded the market infrastructure that underpins USDC, making it the most powerful and secure digital dollar on the internet today, without question,” Allaire said. asserted, drawing a line between USDC and other “unfamiliar options.”

He implicitly pointed to Tether (USDT). USDT has long led the stablecoin market despite concerns over its bank relationships and reserves.

Allaire expressed confidence, but the market reaction seems to be different. Since the March banking crisis, the USDC market cap has fallen from $39 billion to $29 billion, according to blockchain analytics firm Nansen. USDT, on the other hand, is gaining market share.

Allaire said the USDC needs to be made safer, and that can only happen with legislation at the federal level.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Consensus 2023/CoinDesk
｜Original: USDC Stablecoin Strengthened by US Banking Crisis in March, Circle CEO Says