Circle gets access to deposits at SVB bank

At the time of the bank’s bankruptcy, the company had $3,3 billion in accounts

14.03.2023 - 14:00

515

2 min

What’s new? Circle CEO Jeremy Allaire said in an interview with Bloomberg that the company was able to regain access to its funds at the bankrupt Silicon Valley Bank (SVB) on March 13. Allaire also said that Circle’s USDC stablecoin is, in his opinion, “the safest digital dollar on the internet.” It was previously reported that the company held a portion of its $3,3 billion in reserves in SVB. In addition, after the collapse of the bank Circle called on the US Congress to urgently pass legislation to regulate stablecoins.

Interview on the Bloomberg website

Circle situation. As a result of the SVB bankruptcy, USDC temporarily lost parity against the dollar, and investors began to move the asset en masse into other stablecoins. On March 13, Allaire announced that reserves from SVB would be transferred to BNY Mellon Bank, reassuring users that the funds were safe. At the same time, the US regulators unveiled a plan to recover funds from SVB depositors, which does not include a bailout of the bank itself. As of March 14, 14:00 UTC, USDC has nearly regained its peg to the dollar and is trading at $0,996256, according to aggregator CoinGecko.

User exchanged 2 million USDC for 0,05 USDT after the SVB collapse

This happened after the stablecoin lost its peg to the US dollar

Read further

Later, Circle’s senior executive Caroline Hill said that the traditional finance industry is a threat to cryptocurrencies, calling for regulation of the digital asset sector.

Amid SVB’s collapse, crypto exchange Binance began converting the funds from its crypto companies’ assistance fund from Binance USD (BUSD) stablecoins to BTC, ETH, and BNB.

Author: