It was reported that Coinbase offered a $3 billion backstop to Circle in an effort to stabilize the USDC stablecoin after news broke that $3.3 billion of Circle’s deposits were stranded at the failed Silicon Valley Bank.

Circle had sent instructions to wire out its funds on the Friday before the bank’s collapse, but the wire did not go through in time. Panic ensued, and USDC briefly broke its peg with the dollar, causing investors to sell off the stablecoin. Coinbase offered an immediate line of credit to Circle to guarantee full liquidity for USDC reserves, but banking regulators lifted the FDIC on Sunday, removing the sense of crisis. The scenario highlights the solvency and maturity of good actors in the crypto industry in staving off a banking crisis not of their making.