Circle says USDC operations unaffected by SVB, Signature closures News ▸ US ▸ USDC ▸ Bankruptcy
Circle says USDC operations unaffected by SVB, Signature closures
Circle said that the $3.3 billion of USDC reserve deposits held at Silicon Valley Bank will be fully available on Monday.
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Updated: Jun. 23, 2023 at 10:43 pm UTC
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The closure of Silicon Valley Bank and Signature Bank won’t affect Circle’s USDC operations.
The $3.3 billion USDC reserve deposit held at Silicon Valley Bank will be fully available when U.S. banks open on Monday morning, according to the company’s announcement. The company said it had no USDC cash reserves at Signature Bank.
However, Circle used Signature Bank’s real-time settlement network SigNet to process minting and redemption. The company’s CEO Jeremy Allaire said that Circle would rely on settlements through BNY Mellon starting Monday. In a separate announcement, Allaire also said that Circle established a new partnership for automated settlement with Cross River Bank.
USDC regained its peg after trading at around $0.917 last week. The stablecoin lost its peg after Circle announced that it held 8% of USDC’s total reserve with Silicon Valley Bank, sparking an unprecedented rate of redemptions.
The company reiterated that USDC was a regulated payment token and as a result remains 1:1 redeemable with the U.S. dollar.
“Trust, safety, and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle, even in the face of bank contagion affecting crypto markets,” Allaire said in the company’s statement.
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Andjela Radmilac
Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics.
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In this article
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Silicon Valley Bank
Silicon Valley Bank (SVB) is an American commercial bank that is headquartered in Santa Clara, California.
Signature Bank
Signature Bank® (NASDAQ: SBNY) is a New York-based full-service commercial bank with private client offices throughout the New York Metropolitan area, Connecticut, North Carolina and California.
Jeremy Allaire stands as the founder, chairman, and CEO of Circle, a trailblazing consumer Internet company.