The Silicon Valley Bank collapse has many speculators seeking alternatives to bank-based stablecoins, such as USD Coin (USDC).

Many investors dumped USD Coin because they kept $3.3 billion of its cash assets in Silicon Valley Bank. Silicon Valley Bank collapsed on 10 March 2023, leading to a federal bailout on 12 March 2023. Investors became afraid because USD Coin makes payment in US dollars held in bank accounts. If there is no money in those accounts, USD Coin loses its value.