Last Updated on March 11, 2023 by Bitfinsider
The failure of Silicon Valley Bank in California today leaves the crypto market with one fewer loan partner, putting additional pressure on stablecoin issuer Circle to expand its roster of bank partners.
On Friday, Silicon Valley Bank, which serves many tech firms and startups, became the biggest bank to collapse since the 2008 financial crisis, and the FDIC took charge. Silicon Valley Bank declared bankruptcy just days after crypto-friendly Silvergate declared bankruptcy.
Circle now has two fewer banks to store the cash linked to its USDC stablecoin. According to insiders, Circle is in the process of creating new financial partnerships. The stablecoin creator also has banking relationships with BNYMellon and Citizens Trust Bank.
“Silicon Valley Bank is one of six financial partners Circle employs to manage the 25% component of USDC assets kept in currency,” Circle said late Friday in a tweet. “While we wait to see how the FDIC receivership of SVB will affect its depositors, Circle and USDC will continue to function regularly.”
Tether, which has stated that it is not exposed to Silicon Valley Bank, is also growing its own banking ties, adding to an established network “A robust bank network that is resilient.
“These partnerships have been “in the works for quite some time, irrespective of recent events, “Paolo Ardoino, CTO, stated. Tether stated that it had no exposure to Silicon Valley Bank.
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