{"id":617121,"date":"2023-03-12T09:09:15","date_gmt":"2023-03-12T14:09:15","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/12\/circle-says-3-3b-of-usdc-reserves-stuck-at-silicon-valley-bank\/"},"modified":"2023-03-12T09:09:15","modified_gmt":"2023-03-12T14:09:15","slug":"circle-says-3-3b-of-usdc-reserves-stuck-at-silicon-valley-bank","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/12\/circle-says-3-3b-of-usdc-reserves-stuck-at-silicon-valley-bank\/","title":{"rendered":"Circle says $3.3B of USDC reserves stuck at Silicon Valley Bank"},"content":{"rendered":"<div>\n<div>\n<picture><source  type=\"image\/webp\" media=\"(min-width: 750px)\"><source  type=\"image\/webp\"><source  type=\"image\/jpeg\" media=\"(min-width: 750px)\"><source  type=\"image\/jpeg\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/coinjournal.net\/wp-content\/uploads\/1970\/01\/1678515662786-0b106a9f-6149-4f2d-9bd0-a0f80298cb59.jpg\" alt width=\"100%\" height=\"100%\">\n<\/picture>                    <\/div>\n<ul>\n<li dir=\"ltr\">Circle said it failed to remove $3.3 billion from Silicon Valley Bank.<\/li>\n<li dir=\"ltr\">SVB is under FDIC receivership following its collapse.<\/li>\n<li dir=\"ltr\">USDC depegged following the news, falling 8% to hit lows of $0.91 on Saturday morning.<\/li>\n<\/ul>\n<p dir=\"ltr\">Circle, the blockchain payments company that issues the USDC stablecoin, has confirmed that $3.3 billion worth of USDC reserves are stuck at the troubled Silicon Valley Bank.<\/p>\n<p dir=\"ltr\">The latest <a href=\"https:\/\/coinjournal.net\/news\/\">cryptocurrency news<\/a> around USDC comes after crypto markets <a href=\"https:\/\/coinjournal.net\/news\/bitcoin-breaks-below-20k-amid-crypto-bloodbath-heres-what-happened\/\">sank <\/a>on Thursday amid the collapse of SVB and Silvergate Bank.<\/p>\n<h2 dir=\"ltr\">USDC depegs as Circle confirms $3.3 billion SVB exposure<\/h2>\n<p dir=\"ltr\">In a <a href=\"https:\/\/twitter.com\/circle\/status\/1634391505988206592\" rel=\"noopener noreferrer\" target=\"_blank\">tweet<\/a> late Friday, Circle noted that efforts to remove its balances from the bank had failed on Thursday, meaning $3.3 billion of the stablecoin\u2019s cash reserves remain at the bank.<\/p>\n<p dir=\"ltr\">\u201c<em>Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB<\/em>,\u201d the firm noted.<\/p>\n<p dir=\"ltr\">In a follow up tweet as it confirmed the exposure to the <a href=\"https:\/\/coinjournal.net\/news\/svb-collapse-put-this-crypto-bank-in-stronger-position\/\">collapsed bank<\/a>, the firm noted:<\/p>\n<p dir=\"ltr\">\u201c<em>Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. economy and will follow guidance provided by state and Federal regulators<\/em>.\u201d<\/p>\n<p dir=\"ltr\">Circle had earlier disclosed that SVB was one of six banking partners that held roughly 25% of the cash reserves for USDC. That includes Signature Bank and Silvergate Bank that recently <a href=\"https:\/\/coinjournal.net\/news\/silvergate-shares-tumble-after-company-says-its-shutting-down-crypto-bank\/\">announced<\/a> it was liquidating.<\/p>\n<blockquote data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The full list of banks that held cash for Circle\u2019s USDC are Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank (a division of Flagstar Bank, N.A.), Signature Bank, Silicon Valley Bank and Silvergate Bank.<\/p>\n<p>Read more: <a href=\"https:\/\/t.co\/xzeyqRgk8D\">https:\/\/t.co\/xzeyqRgk8D<\/a><\/p>\n<p>\u2014 unusual_whales (@unusual_whales) <a href=\"https:\/\/twitter.com\/unusual_whales\/status\/1634393119713275904?ref_src=twsrc%5Etfw\">March 11, 2023<\/a><\/p>\n<\/blockquote>\n<p dir=\"ltr\">Even as sentiment veered south, Circle had noted that it continued to \u201coperate normally,\u201d hinting that it was waiting for clarity on the impact of SVB\u2019s FDIC receivership on depositors before providing more details.<\/p>\n<p dir=\"ltr\">But with uncertainty rising, USDC lost its dollar peg, falling more than 8% to lows of $0.91 early Saturday.<\/p>\n<h2 dir=\"ltr\">\u201cA black swan failure in US banking system\u201d<\/h2>\n<p dir=\"ltr\">Dante Disparte, the Chief Strategy Officer &#038; Head of Global Policy at Circle, also commented on the unfolding events, noting that the company was \u201cprotecting USDC from a black swan failure in the US banking system.\u201d<\/p>\n<p dir=\"ltr\">\u201c<em>[SVB] is a critical bank in the US economy and its failure \u2013 without a Federal rescue plan \u2013 will have broader implications for business, banking and entrepreneurs<\/em>,\u201d he <a href=\"https:\/\/twitter.com\/ddisparte\/status\/1634395755648630784\" rel=\"noopener noreferrer\" target=\"_blank\">added<\/a>.<\/p>\n<div>\n<hr>\n<h6>Share this article<\/h6>\n<hr>\n<h6>Categories<\/h6>\n<hr>\n<h6>Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/circle-says-3-3b-of-usdc-reserves-stuck-at-silicon-valley-bank\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Benson Toti<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Circle said it failed to remove $3.3 billion from Silicon Valley Bank. SVB is under FDIC receivership following its collapse. USDC depegged following the news, falling 8% to hit lows of $0.91 on Saturday morning. Circle, the blockchain payments company that issues the USDC stablecoin, has confirmed that $3.3 billion worth of USDC reserves are<\/p>\n","protected":false},"author":1,"featured_media":617122,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29261,37138],"tags":[],"class_list":{"0":"post-617121","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-circle","8":"category-reserves"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/617121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=617121"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/617121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/617122"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=617121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=617121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=617121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}