Image: Circle Internet Financial, Envato Elements

Stablecoin issuer Circle Internet Financial stated Monday the US$3.3 billion in USD Coin (USDC) reserve deposits held on the failed Silicon Valley Bank will likely be absolutely recovered when banks open on Monday within the U.S., reflecting a press release from monetary authorities.

See associated article: U.S. regulators shutter Signature Bank, lender to Paxos, Coinbase, citing systemic risk

Fast details

• The US$3.3 billion accounts for about 8% of the overall USDC reserve, Circle stated in a statement, including that it held no money reserves at Signature Bank, which was additionally taken over on the weekend by the Federal Deposit Insurance Corporation. 
• Circle additionally introduced its new partnership with New Jersey-based Cross River Bank, by way of which automated USDC minting and redemption for purchasers will happen beginning Monday, March 13, 2023.
• Circle’s USDC stablecoin broke its greenback peg over the weekend after it revealed its reserves at Silicon Valley Bank, falling as little as US$0.8774. It has since recovered to US$0.9939 as of Monday afternoon in Asia.
• Silicon Valley Bank (SVB) and Signature Bank, two key lenders to the crypto trade, have been shut down and taken over by U.S. regulators to stop a systemic risk to the broader banking trade. SVB, which held greater than US$200 billion in belongings, is the biggest banking failure because the 2008 monetary disaster. 
• USDC is at the moment the fifth largest cryptocurrency and the second largest stablecoin on CoinMarketCap, with over US$40 billion in market capitalization.

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