Last Friday, it became the 18th largest bank in the United States. Silicon Valley Bank‘s bankruptcy announcement sat on the agenda of the markets.
After the bankruptcy statement stablecoin Company issuing USDC Circle‘s statement that he has 3 billion dollars in Silicon Valley Bank USDCIt caused a depeg in .
After the turbulent weekend, after the statement from the USA, there was a recovery of over 5% in both USDC, Bitcoin and altcoins.
After Silicon Valley Bank’s bankruptcy cryptocurrency friendly Signature The bank was also closed.
Stating that they are also working with Signature Bank after this news, Circle stated that they were not affected by this situation. BNY Mellon announced that he would do it through
Jeremy Allaire, co-founder and CEO of Circle In a statement on Twitter, Circle, the company behind USDC, said it will no longer be able to issue and redemption through Signature Bank and will handle payments through BNY Mellon.
The renowned CEO also said early on Monday that he plans to create a new transaction banking partner with automatic issuance and redemption.
Stating that all deposits in the SVB are safe in the face of Silicon Valley Bank’s collapse, Allaire said that these deposits will be available when banks open in the US on Monday morning.
“We are heartened to see that the U.S. government and financial regulators are taking important steps to mitigate the risks posed by the partial banking system.
100% of USDC reserves are also safe and secure and we will complete our transfer to BNY Mellon for the remaining SVB cash.
As the Signature bank has been announced to be closed tonight, we will not be able to issue printing and redemption via SigNet, we will rely on payments made through BNY Mellon.
Additionally, we will potentially launch a new transaction banking partner with automatic issuance and redemption as soon as tomorrow.
We are committed to establishing robust and automated USDC reconciliation and reserve operations with the highest quality and transparency.”
Update thread on USDC
We were heartened to see the US government and financial regulators take crucial steps to mitigate risks extending from the fractional banking system.
100% of deposits from SVB are secure and will be available at banking open tomorrow.
— Jeremy Allaire (@jerallaire) March 12, 2023
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