© Reuters. FILE PHOTO: SVB (Silicon Valley Bank) logo is seen through broken glass in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration
(Reuters) – U.S. cryptocurrency business Circle has revealed $3.3 billion of its $40 billion of reserves are resting with the now-failed lender Silicon Valley Bank, the company declared in a tweet on Friday.
The announcement from the stablecoin organization comes in the wake of startup-centred SVB’s collapse on Friday, the biggest bank failure since the 2008 financial crisis, causing a disruption to global markets and freezing funds belonging to companies and investors.
Traders have been on alert this week for signs of contagion in the financial sector and beyond due to the trouble surrounding SVB and crypto-focused Silvergate, which announced plans to wind down operations and voluntarily liquidate this week.
Circle located in Boston said last week that it had transferred a “small percentage” of USDC reserve deposits held at Silvergate to its other banking partners.
Circle also remarked in another tweet on Friday that it and USDC will continue operations while they wait to see what impact SVB’s receivership has on their depositors, while several crypto companies took to Twitter to deny any exposure to the fallen SVB.
The CEO of cryptocurrency exchange Binance tweeted on Friday that they had no exposure, as did Chief Executive Paolo Ardoino.
Stablecoin issuer Paxos and crypto exchange Gemini tweeted that they have no relations with SVB.
