- U.S. cryptocurrency firm Circle reported that it holds $3.3 billion of its $40 billion USD Coin reserves with the now-defunct Silicon Valley Bank.
- Startup-focused SVB is the largest bank to fail since the 2008 financial crisis.
The Silicon Valley Bank (SVB) logo is seen through a rain-covered window.
Justin Sullivan | Getty Images News | Getty Images
U.S. cryptocurrency firm Circle revealed it has $3.3 billion of its $40 billion of USD Coin reserves held at the now-defunct lender Silicon Valley Bank, the company said in a tweet on Friday.
The stablecoin firm’s announcement comes after startup-focused SVB became the largest bank to fail since the 2008 financial crisis, roiling global markets and leaving billions of dollars belonging to companies and investors in limbo.
Investors have been on high alert this week as they sought signs of contagion in the financial sector and beyond from the troubles of SVB and crypto-focused Silvergate, which disclosed plans to wind down operations and voluntarily liquidate.
Boston-based Circle said last week it had moved a “small percentage” of USDC reserve deposits held at Silvergate to its other banking partners.
Circle said in another tweet on Friday that it and USDC keep operating normally as it awaits to see how SVB’s receivership will affect its depositors, while several crypto companies took to Twitter to deny any exposure to the failed SVB.
The chief executive of cryptocurrency exchange Binance said in a tweet on Friday it had no exposure, as did Tether CEO Paolo Ardoino.
Stablecoin issuer Paxos and crypto exchange Gemini tweeted they do not have any relationships with SVB.