Elevated USDC Redemptions Continue, Signature Investigated Ahead of Closure

Market Update Equities are falling today as trouble in the financial sector continues, with Credit Suisse ($CS) announcing it had found “material weaknesses” in its financial reporting for 2021 and 2022. Banks led US markets lower today as the S&P fell 1.74%. $CS shares are down over 96% from their all-time high as its largest investor, Saudi National Bank, stated it would not provide any financial support. Trading was halted for $CS and several other European banks. Treasury yields remain highly volatile as the bid-ask spread on the 2-,10-, and 30-year Treasuries jumped to their highest level in 6 months. The US 2Y yield fell 10%, offsetting yesterday’s temporary rise and reaching a new local low of 3.8% after yielding above 5% just last week. Lower-than-expected retail sales and PPI releases today strengthened the case for a potential Fed pause next week, with probabilities of a pause or 25 bp hike divided between ~48% and 52%, respectively. After hitting a YTD high of $26.5k amid a liquidation-driven short squeeze, $BTC has since pulled back to $24.2k, following traditional markets lower. $ETH is underperforming, down 4.95% over the last day.Despite regaining its peg to $1 after losing it this past weekend, USDC redemptions remain elevated, with net redemptions reaching