Cryptocurrency – 11 March (Reuters) According to a tweet sent up by the US cryptocurrency corporation Circle on Friday, the Silicon Valley Bank failed lender held $3.3 billion of its $40 billion in USD Coin reserves.
The stablecoin company made its statement following the Friday collapse of startup-focused SVB, the biggest bank failure since the 2008 financial crisis, which rocked the world markets and left billions of assets belonging to businesses and investors stranded in Cryptocurrency.
The struggles of SVB and the cryptocurrency-focused Silvergate (SI.N), which this week reported intentions to wind down operations and voluntarily liquidate, Silicon Valley Bank had traders on high alert this week for indications of contagion in the banking industry and beyond.
A “small fraction” of the USDC reserve deposits held at Silvergate, according to Boston-based Circle, have been transferred to its other banking partners.
As it waits to see how SVB’s receivership would affect its depositors, Circle stated in another tweet on Friday that it and USDC are continuing to run properly. Some cryptocurrency firms, however, turned to Twitter to disclaim any exposure to the collapsed SVB.
Both Paolo Ardoino, the CEO of Tether, and the chief executive of cryptocurrency exchange Binance stated in a tweet on Friday that their companies had no exposure.
Both cryptocurrency exchange Gemini and stablecoin issuer Paxos stated that they had no connections to SVB.
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