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The failure of three major crypto-backing banks<\/a>, Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank caused the stablecoin (USDC<\/a>) to fall to as low as $0.87 from its $1 benchmark.\u00a0<\/p>\n Amid the concern mounting around stablecoins, Binance CEO and co-founder Changpeng (CZ) Zhao tweeted<\/a> on March 13 that with the \u201cchanges in stablecoins and banks,\u201d it will be converting the remaining $1 billion funds in its Industry Recovery Initiative into \u201cnative crypto.”<\/p>\n Given the changes in stable coins and banks, #Binance<\/a> will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC<\/a>, #BNB<\/a> and ETH. Some fund movements will occur on-chain. Transparency.<\/p>\n \u2014 CZ Binance (@cz_binance) March 13, 2023<\/a><\/p><\/blockquote>\n The native cryptos listed by CZ included Bitcoin (BTC<\/a>), Binance Coin (BNB<\/a>) and Ethereum (ETH<\/a>). He then posted links<\/a> to the transaction hash ID for the BTC and the ETC and said $980 million took 15 seconds to move with a $1.98 transaction fee.\u00a0<\/p>\n In response to the move by the Binance co-founder the crypto community on Twitter had mixed responses. Some praised the decision calling it \u201cpure gold\u201d and offered a suggestion to use alternative currencies to peg stablecoins:\u00a0<\/p>\n This move is pure gold. Crypto power.<\/p>\n – How about diversifying into stables other than pegged to USD? <\/p>\n For now allow major global currencies and maybe integrate with CBDCs to allow seamless integration in the future.<\/p>\n It will help in reaching out to a huge unbanked users.<\/p>\n \u2014 Vipul CypherPunk (@vipul19) March 13, 2023<\/a><\/p><\/blockquote>\n However, others questioned<\/a> the move to sell BUSD, which is supposed to be a stablecoin, and convert it into more “volatile” assets.\u00a0<\/p>\n On March 10 Circle, the company behind USDC, disclosed that it has around $3.3 billion<\/a> tied up at the failing SVB, which caused the initial depegging event. However, by March 13, USDC had bounced back towards its $1 peg<\/a>, to where it currently hovers around $0.99.\u00a0<\/p>\n Related: <\/u><\/em><\/strong>Breaking: Silicon Valley Bank UK arm acquired by HSBC for one pound<\/em><\/strong><\/a><\/p>\n It is known that Circle also has an undisclosed amount of reserve funds<\/a> stuck in Silvergate, another U.S.-based crypto-friendly bank that has just gone bankrupt.\u00a0<\/p>\n The instability surrounding USDC caused a domino effect on other stablecoins<\/a> such as DAI, USDD and FRAX, which also slipped away from their $1 position.<\/p>\n Since the events began unfolding on March 10, the entire crypto space has been on edge as to what will happen next. Users in the Twitter community have made claims<\/a> that there is \u201cnobody left to bank crypto companies.\u201d\u00a0<\/p>\n<\/div>\n\n
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