While both $UEDT and $USDC are stablecoins pegged to the US dollar, they have distinct characteristics and market dynamics that influence their popularity and usage.

USDT:
* Market Dominance: USDT has been the dominant stablecoin for several years, holding the largest market capitalization. This dominance is attributed to its early entry into the market, widespread adoption, and strong brand recognition.
* Regulatory
C#oncerns: USDT has faced regulatory scrutiny due to its opaque reserve backing. While it has made efforts to increase transparency, concerns about its issuer, Tether, persist.
* Risk Appetite: Despite regulatory concerns, USDT's market dominance suggests that many investors are willing to accept the potential risks associated with it.
USDC:
* Growing Popularity: USDC has gained significant traction in recent years, particularly due to its transparency and regulatory compliance. It is backed by a reserve of US dollar cash and equivalents, which are regularly audited.
* Institutional Adoption: USDC has attracted significant institutional interest, making it a preferred stablecoin for many financial institutions and corporations.
* Regulatory Oversight: USDC is issued by a regulated entity, Centre Consortium, which provides additional assurance to investors.
Factors Influencing Market Dynamics:
* Regulatory Environment: Changes in regulations can significantly impact the relative attractiveness of different stablecoins. Stricter regulations may favor USDC over USDT due to its greater transparency and compliance.
* Investor Sentiment: Market sentiment plays a crucial role in determining the popularity of stablecoins. News and events related to the issuers or the overall cryptocurrency market can influence investor preferences.
* Competitive Landscape: The emergence of new stablecoins or changes in the competitive landscape can affect the market share of USDT and USDC.
Conclusion:
While USDT currently maintains its dominant position, USDC is gaining ground due to its transparency, regulatory compliance, and institutional adoption. The choice between USDT and USDC ultimately depends on individual investor preferences, risk tolerance, and specific use cases. It's essential to stay informed about regulatory developments, market dynamics, and the specific characteristics of each stablecoin before making invest
ment decisions.#usdt #usdc

The financial sector has endured a few chaotic days. In particular, for USDC stablecoin and Silicon Valley Bank and its stakeholders, since the lender swung from being presumed robust and profitable to being shut down by authorities in less than 48 hours.

Now, a lifebuoy has just been tossed to save the drowning bank and others sinking deep into trouble.

The U.S. government and financial regulators have announced that individuals having assets deposited at the troubled Silicon Valley Bank will have access to their funds.

USDC Reserves Accessible Today

In a tweet Monday morning, Circle Co-founder and CEO Jeremy Allaire disclosed that the company was “heartened” by the U.S. Federal Reserve’s efforts to address risks posed by the “fractional” banking system.

Allaire stated that “100%” of Silicon Valley Bank’s deposits are safe and will be accessible when the bank opens today, March 13.

In his tweet, Allaire added the company would rely on BNY Mellon to facilitate the process of minting and redemption.

Circle revealed late Friday that around $3.3 billion of its $40 billion USDC reserves remained at Silicon Valley Bank. This comes after the share price of the tech-focused lender plummeted in reaction to a panicked consumer run on deposits.

Moments after a capital crisis precipitated the second-largest failure of a U.S. financial institution in history, SVB’s downfall sent shockwaves through the cryptocurrency and global markets.

Allaire said:

“We are committed to building robust and automated USDC settlement and reserve operations with the highest quality and transparency.”

U.S. Gov’t To The Rescue

On Sunday night, U.S. regulators announced emergency measures to contain the contagion caused by the failure of Santa Clara, California-based SVB and a guarantee to protect all depositors.

The announcement was made in a joint statement by U.S. Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and the Federal Deposit Insurance Corp. Chairman Martin Gruenberg.

“Today we are taking decisive actions to safeguard the U.S. economy by strengthening public confidence in our banking system,” the joint press release read.

According to the statement, after obtaining a recommendation from the FDIC and Federal Reserve boards, depositors will have full access to their funds beginning March 13.

“To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors,” the press statement added.

Circle Assured From Loss

This means that Circle will not suffer a loss of funds as a result of the bailout as depositors will be returned to their original state.

The U.S. government’s emergency procedures were also extended to other financial institutions, including the defunct Signature bank.

Meanwhile, the Payment Stablecoin Act, which is still being actively pursued by Congress, would establish in law a system in which stablecoin money would be stored with cash at the U.S. central bank and short-term Treasury bills, Allaire pointed out.

“We need this law now more than ever if we want a truly safe financial system,” the Circle CEO said.

USDC Regains Dollar Peg; Bitcoin Up

Futures associated with the Dow Jones Industrial Average jumped more than 300 points in pre-market trading in response to the developments.

Data from crypto market tracker Coingecko shows that cryptocurrency prices have also recovered substantially, with Bitcoin up 10% in the last 24 hours.

Circle’s USDC, the second-largest stablecoin, is regaining its $1 peg following Allaire’s assurance that its holdings are secure.

#usdc #crypto2023 #koinmilyoner #blockchain #buildtogether