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Given the amount of people planning on easy arbitrage with USDC tomorrow morning, do you know if Signature under the Fed will be able to handle this demand comi

Given the amount of people planning on easy arbitrage with USDC tomorrow morning, do you know if Signature under the Fed will be able to handle this demand coming from Circle?

Blackthorn 4y ago
Easy arbitrage? It's already back to 0.995.
- PheonixPharts 4y ago
  Presumably part of the record number of people buying on Saturday want to cash out to USD tomorrow. I guess they could exchange with BTC or ETH and then to USD but that seems like it removes the "riskless" part. So my working assumption is that many of those people are going to try to cash out Monday morning.
  - loaph 4y ago
    You can sell USDC for dollars at other exchanges, no need to go through BTC/ETC/whatever. For example Gemini has a USD/USDC pair. It won't be pegged to a dollar, like if you redeem through circle but getting $.99+ on the dollar is probably good enough for a lot of people.
    - riskneutral 4y ago
      > You can sell USDC for dollars at other exchanges, no need to go through BTC/ETC/whatever. For example Gemini has a USD/USDC pair. It won't be pegged to a dollar, like if you redeem through circle but getting $.99+ on the dollar is probably good enough for a lot of people. Wow, this is scary. It reminds me of the history of monetary economics in the US during the 19th century, a period known for "wild cat" banks and a system where any bank could print their own private currency. In that system, currency was discounted the further away it was physically from the bank which issued it. The system was divided between "city banks" and "country banks." The more remote the location, the less up-to-date information was available about the health of distant banks, and so the more distant currencies were discounted more heavily. The modern crypto wild west version of this is going to end in a result of going from "getting $0.99+ on the dollar is probably good enough for a lot of people" can turn into "getting 0.01+ on the dollar is as good as it gets" within minutes, if and when there is a run on crypto stablecoins.
      - loaph 4y ago
        That's a really interesting comparison, I'd never heard of it. Crypto is definitely wild! The main point I was trying to make was that people trying to make a buck off of the USDC depeg didn't need to wait until Monday morning. So I didn't think Monday morning would be particularly significant in that particular regard.
DeltaCoast 4y ago
I believe Circle announced more partner banks in a recent tweet.

Given the amount of people planning on easy arbitrage with USDC tomorrow morning, do you know if Signature under the Fed will be able to handle this demand coming from Circle?

Blackthorn 4y ago

Easy arbitrage? It's already back to 0.995.

PheonixPharts 4y ago
Presumably part of the record number of people buying on Saturday want to cash out to USD tomorrow. I guess they could exchange with BTC or ETH and then to USD but that seems like it removes the "riskless" part. So my working assumption is that many of those people are going to try to cash out Monday morning.
- loaph 4y ago
  You can sell USDC for dollars at other exchanges, no need to go through BTC/ETC/whatever. For example Gemini has a USD/USDC pair. It won't be pegged to a dollar, like if you redeem through circle but getting $.99+ on the dollar is probably good enough for a lot of people.
  - riskneutral 4y ago
    > You can sell USDC for dollars at other exchanges, no need to go through BTC/ETC/whatever. For example Gemini has a USD/USDC pair. It won't be pegged to a dollar, like if you redeem through circle but getting $.99+ on the dollar is probably good enough for a lot of people. Wow, this is scary. It reminds me of the history of monetary economics in the US during the 19th century, a period known for "wild cat" banks and a system where any bank could print their own private currency. In that system, currency was discounted the further away it was physically from the bank which issued it. The system was divided between "city banks" and "country banks." The more remote the location, the less up-to-date information was available about the health of distant banks, and so the more distant currencies were discounted more heavily. The modern crypto wild west version of this is going to end in a result of going from "getting $0.99+ on the dollar is probably good enough for a lot of people" can turn into "getting 0.01+ on the dollar is as good as it gets" within minutes, if and when there is a run on crypto stablecoins.
    - loaph 4y ago
      That's a really interesting comparison, I'd never heard of it. Crypto is definitely wild! The main point I was trying to make was that people trying to make a buck off of the USDC depeg didn't need to wait until Monday morning. So I didn't think Monday morning would be particularly significant in that particular regard.

DeltaCoast 4y ago

I believe Circle announced more partner banks in a recent tweet.