CoinDesk reports that an undisclosed portion of Circle’s USDC stablecoin’s $9.8 billion cash reserves were held at Silicon Valley Bank, which has now collapsed. Circle’s January reserve report listed the banks holding the cash deposits for USDC, which included Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank (a division of Flagstar Bank, N.A.), Signature Bank, Silicon Valley Bank, and Silvergate Bank. With a market capitalization of $43 billion, USDC is the second largest stablecoin.
1/ 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.
— Circle (@circle) March 11, 2023
Regarding the tweet, Circle holds $3.3 billion of USDC reserves in the SVB.
Markets Reacting
Due to the uncertainty of USDC stability, people started selling their part of the popular stablecoin and are running for other options within the crypto space.
The USDC/USD markets are around 0.9 ratios at the moment across the crypto exchanges.
