The fallout from the failure of Silicon Valley Bank reached further into crypto, unhinging a key cog in the market that’s meant to be among the safest digital assets in the space. The second-largest stablecoin, USD Coin traded as low as 81.5 cents as investors digested the exposure of its issuer Circle Internet Financial Ltd. to Silicon Valley Bank, which had just collapsed in one of the largest failures in US banking history. 

 On Saturday afternoon, Chief Executive Officer Jeremy Allaire provided additional detail on Circle’s exposure to the bank, saying in a statement on the company’s blog and in tweets that USDC was “100% collateralized with a combination of cash and US Treasuries” and would remain “redeemable 1 for 1” with the US dollar. USDC’s price rallied on the statement, trading around 97 cents as of 3:45 pm in New York.