Crypto firm Circle reveals $3.3 billion exposure to Silicon Valley Bank

Crypto firm Circle reveals $3.3 billion exposure to Silicon Valley Bank


KEY POINTS :

·         US cryptocurrency company Circle said it held $3.3 billion of its $40 billion in USD coins with failed lender Silicon Valley Bank.

·         SVB's initial focus fell on Friday in the worst bank failure since the 2008 financial crisis. 



U.S. cryptocurrency company Circle has $3.3 billion of its $40 billion financing with failed lender Silicon Valley Bank, the company said in a tweet on Friday.

 

The stablecoin company's announcement comes after SVB-focused startups collapsed on Friday in the biggest asset drop since the 2008 financial crisis, rocking global markets and costing billions of dollars in corporate and investor losses. Investors have been on their toes this week amid signs of volatility in the financial sector and more talk of SVB and crypto-focused Silvergate, which this week unveiled plans to shut down operations and take over. do something.

 

Boston-based Circle said last week that it had transferred a "small percentage" of USDC deposits made at Silvergate to other banking partners. Circle said in another tweet Friday that it and the USDC are continuing to work as normal as they wait to see how SVB's approval will affect its depositors, while many crypto companies have taken the Twitter to deny any exposure to SVB.

 

The CEO of cryptocurrency exchange Binance said in a tweet on Friday that he had no disclosures, as did Tether CEO Paolo Ardoino. Stablecoin provider Paxos and crypto exchange Gemini tweeted that they have no relationship with SVB.

Post a Comment

0 Comments