Stablecoin rates USD Coin and DAI have begun to restore their peg to the US dollar. The cost of USDC, which dropped to $0.87 on March 11, rose to $0.98–0.99 on March 13, and the DAI token, after falling to $0.88, also rose in price to $0.98–0.99, RBC Crypto reports. .
Stablecoins USD Coin and DAI lost their peg to the underlying asset from the US dollar after the news about the closure of the Silicon Valley Bank. It blocked $3.3 billion from Circle’s funds, which provided the USDC stablecoin. This is about 8% of the total asset collateral of almost $40 billion.
Dai is the fourth largest stablecoin with a market capitalization of approximately $5 billion and is a decentralized token issued by the Maker DAO. The price of the asset has fallen as its reserves are almost half backed by USDC.
The restoration of the binding of stablecoins to the dollar takes place against the backdrop of active actions by their issuers. The community of the MakerDAO ecosystem “urgently” voted for a proposal to adjust the terms of the protocol. The changes introduced from March 13 should limit the impact of the depreciation of other stablecoins on DAI. The maximum number of DAI tokens that can be borrowed against specific collateral will be reduced, and the daily issue of a stablecoin will be limited to 250 million. The system will also increase the commission for issuing a token against USDC from 0% to 1%.
USDC issuer Circle announced on March 13 that the risk of losing the $3.3 billion locked up in Silicon Valley Bank was removed. Access to these assets will be open to Circle on March 13 with the start of business in the US.
In addition, Circle co-founder and CEO Jeremy Aller announced that the company has partnered with another cryptocurrency-focused bank, Cross River Bank.
Aller also noted that now more than ever it is necessary to secure the financial system by passing a law on stablecoins, which involves holding reserves of such assets in the Fed and in short-term debt securities of the US Treasury (Department of the Treasury).