Circle CEO has just issued an update on USDC.
"TL;DR
While USDC can be used 24/7/365 on chain, issuance and redemption is constrained by the working hours of the U.S. banking system.
USDC liquidity operations will resume as normal when banks open on Monday morning in the United States. As a practical matter, our teams are well prepared to handle significant volume, built on the strong liquidity and reserve assets discussed below.
As a regulated payment token, USDC will remain redeemable 1 for 1 with the U.S. Dollar."
The key line for me is at the end:
"In such a case, Circle, as required by law under stored-value money transmission regulation, will stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary."
USDC price is now moving back up towards $1. Hopefully this restores confidence.
On to the next crisis!
Find the full doc here:
https://www.circle.com/blog/an-update-on-usdc-and-silicon-valley-bank
Not financial advice, please do your own research