While the startup world digests the shocking implosion of well-known financial institution Silicon Valley Bank, the fallout may extend to the crypto world as well. One stablecoin in particular, USDC, was known as of January 17 to have held some of its backing capital at SVB, funds that are likely now illiquid for several days.
When TechCrunch reached out to Circle, the issuer of USDC, for comment on the state of the stablecoin’s reserves, a spokesperson said, “we’re working on this internally, and I’ll keep you posted when I have a response to share.” It is possible that the company moved cash from SVB before it wasn’t able to Thursday; it is also possible that the company had previously removed funds from the bank since its latest asset disclosures.
A Circle spokesperson said Friday that “Silicon Valley Bank is one of six banking partners Circle uses for managing the approximately 25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.”
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