<span style="font-weight: 400">Coinbase, the leading US cryptocurrency exchange, has temporarily suspended support for conversions between USD and stablecoin USDC. The exchange announced the pause in a tweet, stating that it would last throughout the weekend while banks are closed.</span>

[embed]https://twitter.com/coinbase/status/1634399032767307776[/embed]

<span style="font-weight: 400">According to Coinbase, USD transfers from banks clearing during normal banking hours are required to facilitate conversions during periods of heightened activity. The exchange plans to resume the feature on Monday.</span>
<h2><span style="font-weight: 400">Exposure of USDC to Silicon Valley Bank</span></h2>
<span style="font-weight: 400">Circle, which also manages USDC, <a href="https://www.cryptoknowmics.com/news/circle-calls-for-continuity-of-silicon-valley-bank-svb/">announced</a> that its stablecoin has exposure to Silicon Valley Bank (SVB), which recently became the largest bank to fail since the 2008 financial crisis. California's financial regulator seized control of the bank on Friday and placed it in FDIC receivership. Circle, however, reassured users that USDC would continue to operate normally.</span>
<h2><span style="font-weight: 400">Circle's Exposure to SVB</span></h2>
<span style="font-weight: 400">In a tweet, Circle confirmed that it uses six banking partners, including SVB, to manage around 25% of USDC reserves held in cash. The company disclosed that its exposure to SVB stood at $3.3 billion. Circle stated that $3.3 billion of the approximately $40 billion of USDC reserves remained at SVB, despite wires being initiated on Thursday to remove balances not yet processed.</span>

<span style="font-weight: 400">USDC is a stablecoin founded in 2018 and managed by both Circle and Coinbase. USDC is one of the most popular stablecoins in the market, with a market capitalization of over $40 billion.</span>

Coinbase Pauses USD to USDC Conversions Over Weekend

Coinbase, the leading US cryptocurrency exchange, has temporarily suspended support for conversions between USD and stablecoin USDC.

Coinbase Pauses USD to USDC Conversions Over Weekend

Top Picks