Circle Announces Affected by Sillicon Valley Bank Crisis: Here’s The Amount Inside

US-based stablecoin issuer Circleannounced that it has a substantial amount of deposits in Silicon Valley Bank, which has ceased operations.

The bank in question was one of six banking partners in which Circle retains some of the reserve assets that support the $40 billion USDC stablecoin.

1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB.

— Circle (@circle) March 11, 2023

stablecoin The issuer announced on social media that $ 3.3 billion of cash deposits remained in Silicon Valley Bank accounts. This figure represents about 8% of the total USDC reserve.

USDC Has Lost Its Stability!

The second largest stablecoin in the crypto industry, USDC, lost its peg to $1 after the negative development. Crypto investors were impressed by the news, and they quickly sold out $1 billion worth of USDC tokens.

According to the shares reflected on social media DeFi The USDC clearing pool traded on the Curve platform, on the other hand, has a liquidity problem.

USDC, which should be pegged to 1 USD, is currently trading at $0.90 on the Kraken exchange.