March 11 (Reuters) – U.S. digital currency firm Circle has revealed that out of its total holdings of $40 billion in USD, $3.3 billion is available to Silicon Valley Bank. Coin The bank’s reserves are now depleted as of Friday.
The discovery of the stablecoin’s announcement comes after the startup-focused SVB went under. Friday The 2008 financial crisis saw the biggest global banking failure ever, which caused markets to fluctuate and left billions of dollars untouched by investors and companies.
Market watchers have been keeping an eye out this week for any signs of contagion in the financial sector and beyond due to troubles for SVB or crypto-focused Silvergate (SI.N), which recently announced plans to voluntarily liquidate.
Boston-based Circle declared last week that it had moved a “small percentage” of its USDC Reserve Deposits, held at Silvergate, to its other banking partners.
The cryptocurrency issuer tweeted on Friday that USDC continues to function normally, while they wait to observe how SVB’s receivership will affect its depositors. Several crypto companies also took to Twitter to deny any involvement with the SVB collapse.
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Chief executive of cryptocurrency exchange Binance and Tether CEO Paolo Ardoino both tweeted on Friday confirming they had no exposure. Stablecoin issuer Paxos and crypto exchange Gemini also Twittered that they have no relationships with SVB.
Reporting By Rishabh Jaiswal In Bengaluru; Editing By William Mallard
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