After remaining relatively quiet on Friday, Circle disclosed that it had $3.3 billion in exposure to Silicon Valley Bank, which failed earlier that day and was put under FDIC receivership.
Circle, the cryptocurrency payments company behind the stablecoin USDC, verified late Friday evening that $3.3 billion of the funds supporting its coin remain at Silicon Valley Bank.
Circle, which had previously tweeted that Silicon Valley Bank was one of its six banking partners controlling around 25% of the overall reserves of USDC, was attacked by Crypto Twitter for not being more forthcoming about its exposure to the well-known tech bank. After its first tweet, USDC de-pegged from $1, falling around 2% on several decentralized financial platforms.
“After the confirmation at the end of the day that the wires launched on Thursday to withdraw balances have not yet been executed, $3.3 billion of the $40 billion in USDC reserves remain at SVB,” tweeted Circle.
Like other customers and depositors who depend on SVB for banking services, Circle supports the continuation of this crucial bank in the U.S. economy and will adhere to the guidelines issued by state and federal authorities.
On March 8, according to The Block’s statistics dashboard, USDC supply was slightly north of $41 billion. Silicon Valley Bank, whose customer includes several tech businesses and startups, became the biggest bank to collapse since the 2008 financial crisis on Friday, and the FDIC assumed control. The fall of Silicon Valley Bank occurred soon after crypto-friendly Silvergate announced its liquidation. Moreover, Silvergate was a banking partner of Circle.
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