Stablecoin issuer Circle Internet Financial said Monday the US$3.3 billion in USD Coin (USDC) reserve deposits held at the failed Silicon Valley Bank will be fully recovered when banks open on Monday in the U.S., reflecting a statement from financial authorities.
See related article: U.S. regulators shutter Signature Bank, lender to Paxos, Coinbase, citing systemic risk
Fast facts
- The US$3.3 billion accounts for about 8% of the total USDC reserve, Circle said in a statement, adding that it held no cash reserves at Signature Bank, which was also taken over at the weekend by the Federal Deposit Insurance Corporation.
- Circle also announced its new partnership with New Jersey-based Cross River Bank, through which automated USDC minting and redemption for customers will take place starting Monday, March 13, 2023.
- Circle’s USDC stablecoin broke its dollar peg over the weekend after it revealed its reserves at Silicon Valley Bank, falling as low as US$0.8774. It has since recovered to US$0.9939 as of Monday afternoon in Asia.
- Silicon Valley Bank (SVB) and Signature Bank, two key lenders to the crypto industry, were shut down and taken over by U.S. regulators to prevent a systemic threat to the broader banking industry. SVB, which held more than US$200 billion in assets, is the largest banking failure since the 2008 financial crisis.
- USDC is currently the fifth largest cryptocurrency and the second largest stablecoin on CoinMarketCap, with over US$40 billion in market capitalization.
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