Cryptocurrencies
Stablecoin Firm Circle Reveals $3.3 Billion Exposure to Silicon Valley Bank
- Token issuer has reserves at SVB, says “operating normally”
- Other crypto companies have denied exposure to the failed bank
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Stablecoin giant Circle Internet Financial Ltd said $3.3 billion of its about $40 billion of USD Coin reserves remain at Silicon Valley Bank, which collapsed in one of the largest bank failures in US history on Friday.
USD Coin drifted from its closely-watched dollar peg as investors reacted to its exposure to Silicon Valley Bank. The price of USD Coin, which trades under the ticker USDC, lingered below $1, falling to $0.9850 on Friday evening in New York. Stablecoins like USD Coin are intended to maintain a 1-to-1 peg to highly liquid assets like the US dollar or euro. With a circulation of around $40 billion, Circle’s token is second only to Tether’s USDT.