Last Updated on March 11, 2023 by Bitfinsider
Circle, the stablecoin issuer, announced late Friday that $3.3 billion in cash deposits stayed at Silicon Valley Bank (SIVB), the lender that had been shut down earlier in the day by regulators due to a run on deposits. This amount accounts for approximately 8% of the overall reserves backing Circle’s stablecoin USDC.
Circle kept a portion of the reserve assets backing its $40 billion USDC stablecoin with Silicon Valley Bank, one of six banking partners.
USDC is the market’s second biggest stablecoin and a critical component of the crypto ecosystem. Concerned investors redeemed over $1 billion in USDC tokens on Friday, causing USDC to lose its dollar peg on some exchanges and overloading the biggest stablecoin swap pool on decentralized finance platform Curve.
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