Coinbase provided Circle with a $3 billion instant credit line to stabilize USDC after the bankruptcy of SVB
ChainCatcher news, according to a report by Fortune citing informed sources, Coinbase had offered Circle approximately $3 billion in instant credit lines after the bankruptcy of SVB to ensure the full liquidity of USDC reserves and to guarantee that the stablecoin could be redeemed for dollars on the Monday morning following SVB's bankruptcy. Coinbase initially planned to disclose this credit line, but the crisis was quickly resolved. Circle declined to comment on the matter but did not deny it either.
Earlier reports indicated that Circle announced it had $3.3 billion in deposits at Silicon Valley Bank, which, although a small portion of its total assets of $40 billion, led to USDC briefly de-pegging to below $0.90 due to panic. (Fortune)
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