Crypto firm Circle reveals $4.5b exposure to collapsed Silicon Valley Bank
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Silicon Valley Bank, which was focused on start-ups, collapsed on Friday in the largest bank failure since the 2008 financial crisis.
PHOTO: NYTIMES
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SAN FRANCISCO – United States cryptocurrency firm Circle has US$3.3 billion (S$4.5 billion) of its US$40 billion of USD Coin (USDC) reserves at collapsed lender Silicon Valley Bank (SVB),
The stablecoin company’s announcement comes after SVB, which was focused on start-ups, collapsed on Friday in the largest bank failure since the 2008 financial crisis,
Traders have been on guard this week for signs of contagion in the financial sector and beyond from troubles at SVB and crypto-focused Silvergate, which this week disclosed plans to wind down operations and voluntarily liquidate.
Boston-based Circle said last week that it has 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 continue to operate normally while it waits to see how SVB’s receivership will affect its depositors.
Several crypto companies took to Twitter to deny any exposure to SVB.
Mr Zhao Changpeng, chief executive of cryptocurrency exchange Binance, said in a tweet on Friday that it has no exposure, as did Tether chief technology officer Paolo Ardoino.
Stablecoin issuer Paxos and crypto exchange Gemini tweeted that they do not have any relationships with SVB. REUTERS
