A serious ripple effect has begun following the recent collapse of Silicon Valley Bank, causing USDC to depeg from the US Dollar with the price quickly dropping by 10%, reaching as low as $0.90. 

Coinbase put out a tweet following the collapse that they are suspending all conversions of USDC into USD to protect themselves from any potential bank runs. 

Circle, the company behind USDC, has also put out a statement explaining that they had a balance of $3.3 billion held at SVB. However, many are unsure about the current situation caused by SVB’s fall which has lost nearly $200 billion.