Why Did Binance Sell USDC For BTC, ETH After Silvergate Bank Collapse?
Adekunle Joshua
Binance may have been concerned about the stability of USDC before the collapse of Silvergate Bank.
Binance started converting its customers’ USDC into BUSD as far back as September 2022.
Binance’s USDC reserve shrank from more than $3 billion on 1st March to $23.9 million on 1st May.
On-chain data indicates that BNB started to convert its USDC holdings into Bitcoin and Ether immediately after the March 12 collapse of Silvergate.
Binance’s PoR audit shows that the exchange has more than enough reserves to protect its customer funds.
The recent collapse of Silvergate Bank initially raised concerns about the stability of stablecoins