Tether has no exposure to Silvergate, says CTO Paolo Ardoino Tether has no exposure to Silvergate, says CTO Paolo Ardoino
The news comes after the distressed crypto bank's ties with the USDC stablecoin are coming under increased scrutiny.
1 min read
Updated: Mar. 2, 2023 at 8:50 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
On the heels of a significant announcement involving the distressed US bank Silvergate, which had ties to the lender FTX and is now facing an increasing consortium of capital flight and scrutiny from regulators, at least two crypto companies took to social media today to announce how the news has affected them.
Tether, the stablecoin pegged to the U.S. dollar and backed “100% by Tether’s reserves,” according to its website, took to Twitter today to announce it had no exposure to the California bank. According to Paolo Ardoino, CTO of Tether, the stablecoin has no exposure to Silvergate.
Circle’s comments
That is not so for another stablecoin, USDC. In a separate tweet, Circle said on Mar. 2 that despite its exposure to Silvergate, all customer assets remain safe and secure.
“We are sensitive to the concerns around Silvergate and are in the process of unwinding certain services with them and notifying customers,” Circle tweeted.
Silvergate Capital, the holding company of Silvergate bank, saw a decline in its stock on March 2 due to the postponement of its annual 10-K report.
The bank is currently evaluating recent events that took place after the end of 2022. Silvergate bank provides banking services to cryptocurrency firms. The company’s stock fell by 45% by the end of the day, and earlier, it had dropped by 48.8%. As a result, Silvergate Capital’s year-to-date losses widened to 57%.
Market cap and reserves
USDT and USDC are the two biggest stablecoins by market capitalization, each accounting for $71 billion and $42.9 billion, respectively.
According to a recent CryptoSlate report, Wall street institution Cantor Fitzgerald reportedly manages $39B of Tether’s reserves, assets that include approximately $39.2 billion of U.S. Treasury bills.
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Author 
Dorian Batycka
Dorian Batycka is a journalist interested in art and technology. He has previously contributed to CoinDesk, Decrypt, Artforum, Artnet News, the Art Newspaper, and many others. He can be found on Twitter and Instagram @temp_projects, where he often memes his way through current financial and art news, scandals, and events.
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In this article
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
USD Coin
$1.00006
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
