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Curious on the back end treasury move: If circle had decided to stop using svb usd reserves and put it all back into a stablecoin even if it depegged > 1.00 wo
by IG_Semmelweiss 4y ago
Curious on the back end treasury move:
If circle had decided to stop using svb usd reserves and put it all back into a stablecoin even if it depegged > 1.00 wouldn't that have been the winning move?
They obviously have more than 1 banking institution, so its not like they had no options
What stopped them from exiting SVB via their own currency ?
- shawabawa3 4y agoAre you asking why circle didn't back USDC with USDC? It's back with dollars in bank accounts to fund redemptions, sadly $3B of which are in SVB. The rest (~30B) is in short term US treasuries (36 days average duration)
- IG_Semmelweiss 4y agoyes. Why would they not use their own USDC reserves to buy more USDC ? I suppose I dont know how the choice of what amount to keep in reserve is made, and who is deciding on bank institution(s) . Because, even if the price of the USDC temporarily go over 1, it would be fine considering the situation ?