The bust Silicon Valley Bank has also stirred up the crypto market.
(Photo: IMAGO/Silas Stein)
Denver The abrupt exit from Silicon Valley Bank also has significant consequences for the crypto world. The stablecoin provider Circle is one of the bank’s customers. There are parked $ 3.3 billion in reserves, as Circle announced on Friday.
It is unclear how the bank’s bankruptcy will affect customer balances. Overall, the company has reserves worth a good $40 billion. The attempts to withdraw the money at the last minute were unsuccessful, as the company announced via Twitter.
Circle’s announcement prompted users to convert the Circle-issued stablecoin USDC back to dollars in a big way. As a result, the token lost its peg to the dollar and was still trading at $0.94 at 6:30 a.m. German time. A few other stablecoins also slipped. Actually, as the name suggests, they should always be worth one dollar.
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