The overnight collapse of two major traditional banks — Silicon Valley Bank (SVB) and Signature Bank (NASDAQ:SBNY) — triggered a series of events that impacted millions of businesses, venture capitalists and bottom-line investors alike. However, United States President Joe Biden assured taxpayers that they would not feel the burn as the federal government takes action to protect depositors.
On March 11, major stablecoins, including USD Coin (USDC), USDD (USDD) and Dai (DAI), depegged from the U.S. dollar after Circle announced that $3.3 billion of its $40 billion reserves were stuck in SVB.