USDC

Stablecoin giant Circle Internet Financial Ltd said $3.3 billion of its about $40 billion of USD Coin reserves remain at Silicon Valley Bank, ...

Traders are moving out of USDC, crypto's second largest stablecoin after Circle said it banked with failed Silicon Valley Bank (SVB) and Silvergate Bank.

ETH is down roughly 9% on the week to $1,424 and BTC is down roughly 10%, according to The Defiant Terminal. More broadly, crypto markets have stabilized somewhat after a case brought by the New York Attorney General calling ETH a security, coincided with a drop of over 6% for the asset in the span of three hours on Mar. The pool, which consists of $494M of the three stablecoins, is now imbalanced and consists of 47% DAI, 46% USDC, and 6% USDT, as of late afternoon New York time on Mar. A chart from the FDIC’s quarterly profile of banks, which was released on Feb. SVB was the United States’ 18th largest bank, with $212B in assets, as of Sept. Traders have sold USDT for USDC and DAI, in anticipation that Circle held a significant amount of the reserves backing USDC in SVB.

Stablecoin issuer Circle Internet Financial disclosed that it held a chunk of its USD Coin's (USDC-USD) cash reserves at SVB Financial Group (SIVB) in ...

Every token in circulation is backed by $1 that is held in reserve, consisting of cash and shorter-maturity Treasury securities. Circle held $9.9B of cash at U.S. regulated financial institutions as of Jan. [SI](https://seekingalpha.com/symbol/SI)), moving "the small percentage of USDC reserve deposits held at Silvergate to our other banking partners," it said in a [release](https://www.circle.com/blog/update-on-banking-services-with-silvergate-bank). [SI](https://seekingalpha.com/symbol/SI)) -- the crypto-friendly bank that [winded down bank operations](https://seekingalpha.com/news/3945659-silvergate-capital-to-wind-down-operations-liquidate-silvergate-bank) earlier this week and said it would liquidate voluntarily -- Bank of New York Mellon (NYSE: [BK](https://seekingalpha.com/symbol/BK)), Customers Bank (NYSE: [CUBI](https://seekingalpha.com/symbol/CUBI)) and New York Community BanK (NYSE: [NYCB](https://seekingalpha.com/symbol/NYCB)), the [report ](https://www.circle.com/hubfs/USDCAttestationReports/2023%20USDC_Circle%20Examination%20Report%20January%202023.pdf)said. [SVB Financial Group (SIVB)](/symbol/SIVB?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3ASIVB), [NYCB](/symbol/NYCB?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3ANYCB), [CUBI](/symbol/CUBI?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3ACUBI), [BK](/symbol/BK?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3ABK), [SI](/symbol/SI?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3ASI), [USDC-USD](/symbol/USDC-USD?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3AUSDC-USD)By: [Max Gottlich](/user/54370868?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cbutton%3Aauthor_name%7Cfirst_level_url%3Anews), SA News Editor [8 Comments](#comments)

Circle, a US-based Stablecoin issuer, could be in serious trouble after one of its banking partners, Silicon Valley Bank (SVB), shuttered after failin.

This is one of the factors driving the asset’s price lower. The author makes no representations as to the accuracy, completeness, or suitability of this information. The author will not be held responsible for information that is found at the end of links posted on this page. The after-effects of this news from Circle will be seen in the coming hours. The author has not received compensation for writing this article, other than from FXStreet. Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. The ripple effect of this development is yet to be felt in the crypto ecosystem as Bitcoin price is 3.19% in the last six hours and currently trades at $20,588. It also does not guarantee that this information is of a timely nature. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. This development from the second-largest stablecoin issuer with a market capitalization of $47 billion adds more pressure on the already bearish market conditions. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.— Circle (@circle) In that case, probably a lot better of a situation.— Galois Capital (@Galois_Capital)

Circle held an undisclosed amount of cash in the now closed Silicon Valley Bank according to a USDC reserve report.

Moreover, the development was made in a USDC Reserve Report that listed the financial institutions that custody the cash for the platform. Silicon Valley Bank made headlines during the second half of the week due to its plummeting stock price. Specifically, the stablecoin issuer listed SVB among other US-regulated financial institutions that held the platform’s reserves.

USD Coin, the stablecoin issued by Circle Internet Financial Ltd., fell further from its dollar peg and traded as low as 90 cents as investors reacted to ...

Circle said $3.3 billion of its about $40 billion of reserves backing the stablecoin remain at Silicon Valley Bank, which became one of the largest bank failures in US history on Friday. Stablecoin Firm Circle Reveals $3.3 Billion Exposure to Silicon Valley Bank UK to Spend £20 Billion on Carbon Capture in Clean Energy Push

After Circle disclosed how much of its USDC stablecoin is backed by reserves held by Silicon Valley Bank, exchanges show caution signs.

“Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. Finally, late on Friday night, Circle disclosed that $3.3 billion worth of the cash backing USDC remains locked in Silicon Valley Bank. (USDC was originally launched by Centre, a joint venture between Coinbase and Circle) [tweeted](https://twitter.com/circle/status/1634391708837330945?s=20). The firm said Silicon Valley Bank is one of six banks Circle uses for managing 25% of USDC reserves. Top cryptocurrency exchanges Binance and Coinbase both said on Friday night that they would temporarily suspend USDC conversions as the contagion from the collapse of

USDC lost 3% of its value as it traded at $0.969, while on-chain data further reveals that Circle redeemed a net of $1.4 billion in USDC in 8 hours.

During the timeline, Circle’s chief financial officer Jeremy Fox-Geen had shared their intent to go public but planned on waiting for better market conditions. At the time of writing, USDC lost 3% of its value as it traded at $0.969. 2/ Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. However, two days later, on March 11, Circle confirmed that the wire transfers were not completely processed and that $3.3 billion of the USDC reserves was still with SVB. In an effort to reduce exposure, crypto companies including Coinbase and Jump Trading redeemed approximately $850 million and upto $138 million in USDC. “As with Silvergate, our teams have worked at speed to limit any exposure to banks.

Circle's USDC, the second largest stablecoin with $43 billion market capitalization, held an undisclosed part of its $9.8 billion cash reserves at failed ...

Circle Internet Financial's USDC stablecoin, which is the second-largest stablecoin at $42 billion of market cap, depegged from the U.S. dollar as contagion ...

Circle's USDC stablecoin was hit by the shutdown of Silicon Valley Bank, one of its key banking partners.

While the crypto market responded with a massive sell-off, not all USDC investors were lucky enough to walk away with their funds amid the uncertainty.

He explained the nuances that eventually led to a maximal extractable value (MEV) bot netting $2.045 million in profit after paying $45 in gas and $39,000 in MEV bribes. On-chain investigations revealed that the user had stored the assets in a liquidity pool (LP) — a popular method to earn passive income in cryptocurrencies. [Silicon Valley Bank did not transfer $3.3 billion](https://cointelegraph.com/news/circle-discloses-3-3b-tied-up-at-silicon-valley-bank) of its USD Coin ( [USDC](https://cointelegraph.com/usdc-price-index)) reserves, the market responded with a massive sell-off — [depegging the stablecoin](https://cointelegraph.com/news/usdc-depegs-as-circle-confirms-3-3b-stuck-with-silicon-valley-bank) from the U.S. The user could have sold his LP tokens for USDT for a 6% slippage. Not all of them are going to make it there in one piece, however.— BowTiedPickle.eth With USDC insolvency fears rampant, users are fleeing to safety in other stables.

billion of USDC reserves are held in the form of cash at Reserve Banks, which include the two members of the Federal Reserve System.

Circle earlier confirmed it has $3.3 billion backing its USDC stablecoin parked at now-shuttered Silicon Valley Bank.

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. The fate of that cash is now uncertain, with Silicon Valley Bank having been seized by the FDIC, and USDC – for the moment – [has lost its dollar peg](https://www.coindesk.com/markets/2023/03/11/usdc-stablecoin-depegs-from-1-circle-says-operations-are-normal/). [strict set of editorial policies](/ethics/). "Silicon Valley Bank is a critical bank in the U.S. Speculating on the stability of USDC, traders redeemed $1.6 billion of USDC, lowering its total supply.

By Frances Yue. Crypto exchange Coinbase said Friday it is temporarily suspending the conversion between stablecoin USDC and USD over the weekend, ...

MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. Whether and how much depositors with over $250,000 would get their money back, depends on the amount of money FDIC receives from selling Silicon Valley Bank's assets. Coinbase said it would resume the conversions between USDC and USD on Monday.

Volatility is expected to continue throughout the weekend as panic sets in after the Silicon Valley Bank collapse. The failure of SVB is hurting the reserve ...

Ket to that will be if a buyer of the bank can be found. [Peter Thiel's Founders Fund advised depositors to get out](https://www.bloomberg.com/news/articles/2023-03-11/thiel-s-founders-fund-withdrew-millions-from-silicon-valley-bank), which was the nail in the coffin for SVB – bank runs are hard to stop. The transaction ended up costing $2,080,468.85 to receive $0.05 of USDT: DAI is the fourth-largest stablecoin. The Fed putting up interest rates means the value of bonds falls, because bond yields and price have an inverse relationship. This is common practice in the fractional banking model that underpins modern banking. Traders and crypto firms reacted to the news of USDC reserve exposure to SVB by exiting their positions in the stablecoin and moving into USDC has $3.3 billion tied up at SVB. USDC and DAI in trouble – which of the top stablecoins are at risk? USDC is the second-largest stablecoin in the crypto ecosystem and is an essential part of the industry's plumbing. [FDIC the receiver](https://www.fdic.gov/news/press-releases/2023/pr23016.html) – after depositors initiated a run on the bank by trying to withdraw as much as $45 billion on Thursday. The failure of SVB is hurting the reserve position of

Other popular cryptocurrencies, such as Tether (USDT) and Binance USD (BUSD), continue to maintain a 1:1 peg with the US dollar.

[DAI](https://cointelegraph.com/dai-price-index)), a stablecoin issued by MakerDAO, lost 7.4% of its value due to USDC’s depegging. [USDC](https://cointelegraph.com/usdc-price-index)) depegged from the U.S. dollar due to a [subsequent sell-off](https://cointelegraph.com/news/usdc-depegs-as-circle-confirms-3-3b-stuck-with-silicon-valley-bank) after Silicon Valley Bank (SVB) [did not process](https://cointelegraph.com/news/circle-discloses-3-3b-tied-up-at-silicon-valley-bank) $3.3 billion of Circle’s $40 million transfer request. SVB was shut down by the California Department of Financial Protection and Innovation for undisclosed reasons. USDD responded to the USDC sell-off with a nearly 7.5% drop to trade at $0.925, while FRAX dipped even further to $0.885. As a result, DAI depegged from the dollar to momentarily touch $0.897.

Some $4 million in USDC futures were liquidated in the past 24 hours, Coinglass data shows.

[ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [strict set of editorial policies](/ethics/). As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of [stock appreciation rights](https://www.investopedia.com/terms/s/sar.asp), which vest over a multi-year period. The funding was paid by traders who shorted USDC, paying over 0.4% to borrow the asset and bet on lower prices. Leverage could potentially magnify returns for traders betting on a recovery.

LONDON, March 11 (Reuters) - By Elizabeth Howcroft and Rishabh Jaiswal. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the U.S. bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors. USDC's price usually holds close to $1, making Saturday's drop unprecedented. It recovered slightly to trade around $0.90 by 1120 GMT.

USDC, the stablecoin tracing the USD, is under immense pressure as users rush to convert to other assets, including BUSD by Paxos and USDT by Tether ...

During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. The Each USDC token, it should be noted, is backed 1:1 with cash, and redemption means every backing cash or cash equivalent from Circle must be sold and disbursed to the client. The loss will likely be covered by interest payments from treasuries, where most of Circle’s assets are held in. What’s on the table currently is USDC by Circle. [trading](https://coinmarketcap.com/currencies/usd-coin/) at $0.90 to the USD at the time of writing on March 11.

Issuer Circle Internet Financial said it held a chunk of its reserves at the failed bank, while the token's price fell below a dollar.

[said](https://twitter.com/circle/status/1634391505988206592) $3.3 billion of its token’s $40 billion in reserves were at the bank, which regulators [shut down](https://www.barrons.com/articles/svb-financial-stock-portfolio-outlook-loss-93287f3d?mod=hp_LEAD_1&mod=article_inline) earlier in the day. One of the most important underpinnings of the cryptocurrency market appears to be on shaky ground, as stablecoin issuer Circle Internet Financial disclosed that a significant portion of its reserves are locked up at the failed Silicon Valley Bank and the token struggled to maintain its dollar peg. Stablecoin USDC, Part of Crypto’s Bedrock, Is Caught in Failed Silicon Valley Bank

The U.S. cryptocurrency firm Circle's USD Coin lost its dollar peg and fell to a record low Saturday morning.

banking failure](https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html) since the 2008 financial crisis. The company's spectacular implosion began late Wednesday when it surprised investors with news that it needed to raise [$2.25 billion](https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html) to shore up its balance sheet. [shuttered](https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html) SVB Friday and seized its deposits in what has become the [largest U.S. In a tweet Friday, Circle said it has $3.3 billion in remaining reserves at SVB. USDC is designed to trade at $1, but it fell below 87 cents on Saturday, according to data from CoinDesk. The U.S.

LONDON: Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday (Mar 11) after Circle, the United States firm behind the ...

The largest, Tether, has a market cap of US$72 billion, according to CoinGecko. USDC's price usually holds close to US$1, making Saturday's drop unprecedented. USDC is the second-biggest stablecoin with a market cap of US$37 billion. It recovered slightly to trade around US$0.90 by 1120 GMT. Advertisement Circle said in a tweet on Friday that the company and USDC "continue to operate normally" while the firm waits for clarity on what will happen to Silicon Valley Bank depositors.

Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the US firm behind the coin, revealed some of the ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. USDC’s price usually holds close to $1, making Saturday’s drop unprecedented. It recovered slightly to trade around $0.90. [tweet](https://twitter.com/circle/status/1634341007306248199) Friday it and USDC “continue to operate normally” while the firm waits for clarity on what will happen to Silicon Valley Bank depositors. [collapsed lender Silicon Valley Bank](http://www.cnn.com/2023/03/11/business/svb-collapse-roundup-takeaways/index.html), the company said in a [tweet](https://twitter.com/circle/status/1634391505988206592) Friday.

USDC stablecoin is latest to lose U.S. dollar peg after owner announced holdings at the failed Silicon Valley Bank.

treasuries," and that "USDC reserves are held in the custody and management of leading U.S. [$40 billion collapse](https://www.investopedia.com/sec-sues-terra-and-founder-for-fraud-7111256) of the TerraUSD stablecoin last May. [halt the agreement](https://www.investopedia.com/binance-and-paxos-caught-up-in-cryto-regulatory-crackdown-7108974) in February and BUSD lost more than 50% of its market cap. Federal Reserve Chairman Jerome Powell's [comments](https://www.investopedia.com/fed-vice-chairman-offers-olive-branch-to-crypto-7253352) this week that he sees "turmoil," and "run risk" in digital currencies haven't aged well in light of the Silicon Valley Bank collapse. Its website says "every digital dollar of USDC on the internet is 100% backed by cash and short-dated U.S. The cryptocurrency sector faces a major headache with another stablecoin in trouble. Paxos was involved in a commercial partnership to mint the stablecoin for Binance, the world's largest crypto exchange. "Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB," a Circle tweet said.4 That $40 billion figure has now been reduced and almost 10% of the USDC reserves are now held in the failed bank. The 1:1 peg to the U.S. Payments giants Visa (V) and Mastercard (MA) were both previously involved in the testing of crypto payments using USDC.56 Silicon Valley Bank (SIVB) collapsed on Friday, marking the largest U.S. currency amid a surge of investor withdrawals after its founder, Circle Internet Financial Ltd., said it had $3.3 billion invested in the collapsed