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Pausing USDC->USD over the weekend isn't going to help confidence either.

• charcircuit 4y ago
  USDC -> USD always only ever worked during banking hours. Exchanges offering USDC <-> USD at any time have had to account for this and have enough reserves of USD and USDC themselves.
  • tgsovlerkhgsel 4y ago
    Would they really need USD reserves? Until the USD is withdrawn, it's just an entry on their internal ledger, and it can't be withdrawn outside business hours, and during business hours they can then exchange the USDC for USD.
    • charcircuit 4y ago
      It limits risk in the case of a depeg where you are unable to exchange USDC back into USD. You don't want all your company's assets to be exchanged into USDC.
      • tgsovlerkhgsel 4y ago
        This risk doesn't really depend on having USD reserves though, does it? If the company offers making the USDC <-> USD trades outside of business hours, it's taking the risk. (Of course, if it has the reserves it can be sure to remain solvent if that risk manifests.)
        • charcircuit 4y ago
          It's just the idea to limit how much USDC you are holding at one time. The more USDC you hold, the more risk there is. A reserve of USDC is just another way of saying that you have a max of USDC you are willing to hold.