Details keep emerging about the chaotic weekend that followed the collapse of Silicon Valley Bank—including a plan by Coinbase to ride to the rescue of Circle after the USDC stablecoin broke its peg with the dollar following news that $3.3 billion of Circle's deposits were stranded at the failed bank.
According to a person familiar with the arrangement, Circle sent instructions to wire out its funds on the fateful Friday, but the bank collapsed before the wire went through. This put Circle in the same position as hundreds of other Silicon Valley Bank customers that spent an agonizing three days wondering what would become of their deposits, which were only protected up to $250,000 under FDIC insurance.
