Circle, the world’s second-largest stablecoin issuer, made its first official statement after expressing that it was exposed to the Silicon Valley Bank bankruptcy.
in-house $209 billion funded and 16th largest bank the one which… Silicon Valley Bank (SVB) went bankrupt. Bankruptcy California’s Department of Financial Protection and Innovation (DFPI) ended with the closing of the bank in question. Federal Insurance Corporation (FDIC) was appointed as a trustee against the insured assets of the bank after the closing. After all these developments, crypto companies with assets in the bank began to be talked about. Circle, the issuer of USDC, attracted attention in this process.
After the events, Circle’s USDCThe reports that he stated that he kept some of his cash assets in Silicon Valley Bank came up again. The Circle front, which initially hesitated to make a statement, talked about the situation from its official Twitter account. in sharing found.
In the official statement, Circle reserves 25% in cash holdings and these cash assets Distributed in 6 different banks stated that they have:
“Silicon Valley Bank is one of six banks where Circle holds 25% of its assets in cash and manages this fund. We expect it to become clear how the SVB, which is taken over by the FDIC, will affect us. Circle and USDC continue to operate as usual.”
The reactions to the statement on social media show that it did not have the effect to remove the doubts. Circle’s failure to disclose exactly how much assets they have on the SVB in the official post caused reactions.
This uncertainty on the Circle front triggered a stablecoin crisis, eventually causing investors to cash out their stablecoins and exit the exchanges.