The value of major cryptocurrencies surged Monday in the wake of plans by the US government to protect Silicon Valley Bank and Signature Bank depositors.

The Federal Reserve issued a pair of statements on Sunday with one clear message: Silicon Valley Bank depositors, both insured and uninsured, will receive assistance in a way that “fully protects” their deposits.

The risk of a bank contagion was lower at the start of the week than last Friday, but not zero.

After a rally in the price of bitcoin and other crypto assets, the total crypto market surpassed $1 trillion in value on Monday, up about 14% per day.

Over the past 24 hours, bitcoin was up 18.4% to more than USD 24,000, while ether was up 15% to around USD 1,700, data from CoinMarketCap showed. The two cryptocurrencies, which are the largest by market capitalization, are traded in parallel.

Image credit: CoinMarketCap (opens in a new window)

USDC, the second-largest stablecoin, also recovered about 4% in the past 24 hours following news that deposits would be protected, data from CoinMarketCap showed.

The purported stablecoin decoupled from its $1 peg for three days and went as low as 88 cents, after uncertainty circulated around the $40 billion USDC empire and the company shared that $3.3 billion, or about 8.2%, of its total stock of reserves was owned by SVB.

Circle announced that reserve risk has been “removed” since the funds became available Monday morning.

“Trust, security and 1:1 convertibility of all USDC in circulation is of paramount importance to Circle, even in light of banking contagion hitting crypto markets,” said Jeremy Allaire, Circle co-founder and CEO, in a statement. “We are encouraged to see the U.S. government and financial regulators taking critical steps to mitigate risks extending from the banking system.”

USDC’s market cap is approximately $40.5 billion, with $10.9 billion in daily traded volume, down 1% in the past 24 hours, according to data from CoinMarketCap. At the time of publication, USDC was millicents away from its $1 to $0.993 peg, up 3.9% over the past 24 hours.

The crypto market, among other major industries, had a volatile week after Silvergate Capital, one of the largest banks that provide services to crypto companies, shared that it was winding down its operations and liquidating its banking division.

Soon after, Silicon Valley Bank collapsed on Friday and Signature Bank, a major crypto lender, was shut down by regulators on Sunday.

However, this market turmoil has seemingly bolstered the crypto market as traders reacted positively to the news and the overall market cap rose on Monday.