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The failure of three major crypto-friendly banks Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank caused the USD Coin (USDC) stablecoin to fall to as low as $0.87 from its $1 peg.

Amid the concern mounting around stablecoins, Binance co-founder and CEO Changpeng CZ Zhao tweeted on March 13 that with the changes in stablecoins and banks, the exchange will be converting the remaining $1 billion funds in its Industry Recovery Initiative to native crypto.

The native cryptocurrencies listed by CZ included Bitcoin (BTC), BNB (BNB) and Ether (ETH). He then posted links to the hash ID for the BTC and ETH transactions, saying $980 million took 15 seconds to move with a $1.98 transaction fee.

In response to the move by the Binance co-founder, Crypto Twitter had mixed reactions. Some praised the decision, calling it pure gold, and offered a suggestion to use alternative currencies to peg stablecoins:

However, others questioned the move to sell the Binance USD (BUSD) stablecoin and convert the fund to more volatile assets.

On March 10, Circle, the company behind USDC, disclosed it had around $3.3 billion tied up at the failing SVB, which caused the initial depegging event. However, by March 13, USDC had bounced back toward its $1 peg currently hovering around $0.99.

Related: Breaking: Silicon Valley Bank UK arm acquired by HSBC for one pound

Circle also has an undisclosed amount of reserve funds stuck in Silvergate, another United States-based crypto-friendly bank that went bankrupt.

The instability surrounding USDC caused a domino effect on other stablecoins such as Dai (DAI), USDD and FRAX, which also slipped from their $1 peg.

Since the events began unfolding on March 10, the crypto space has been on edge as to what will happen next. Twitter users have claimedthat there is nobody left to bank crypto companies.

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Binance CEO announces recovery funds conversion from BUSD to native crypto - Cointelegraph