Crypto exchanges Binance and Coinbase have paused USDC conversions as the stablecoin fails to regain its USD peg.
Earlier, Circle revealed its $3.3B exposure to the now-defunct Silicon Valley Bank, causing the value of USDC to plummet to as low as $0.88.
Shortly after Circle’s announcement, Binance tweeted that the exchange has suspended auto-conversions of USD Coin (USDC) to Paxos-issued Binance USD (BUSD).
The exchange cited the current market conditions as the reason behind the suspension. Binance has also stopped the BUSD auto conversion facility for new deposits of Pax Dollar (USDP) and TrueUSD (TUSD), with the exchange adding,
“Users will no longer be able to withdraw USDC, USDP or TUSD from their BUSD balances.”
Similarly, Coinbase said the exchange has temporarily paused USDC to USD conversions. Unlike Binance, Coinbase will resume USDC conversions once banks reopen on Monday.
Blockchain transactions reveal that Circle has burned $1.4B worth of USDC tokens since Friday. Coinbase, which co-founded USDC with Circle in 2018, has also redeemed $850M USDC.