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
479
2 min
0
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
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.
Useful material?
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024