USDC

Market players are concerned about Silicon Valley Bank&#39;s contagion after Friday&#39;s second-largest bank collapse (SVB). Venture capitalists and crypto executives discussed the failure and why the crypto community is watching Circle.Circle-issued USDC, the second-largest stablecoin, has lost its peg on many exchanges. CoinGeko data shows it trading at $0.94 as of this writing.Despite having 25% of its cash reserves with SVB—$3.3 billion—Circle said it continues to operate normally. As of late January, Circle&#39;s cash reserves were with U.S.-regulated banks such “Bank of New York Mellon, Citizens Trust Bank, Consumers Bank, New York Community Bank, a part of Flagstar Bank, N.A., Signature Bank, Silicon Valley Bank, and Silvergate Bank.”According to Circle&#39;s transparency page, the institutions own $11.4 billion, up from $9.88 billion in the report. Circle held U.S. Government Securities for the other 73.7% of its reserves. Circle had $42.3 billion in reserves, 0.1% more than its $42.2 billion token debt. CoinGecko reports USDC&#39;s market cap at $42.8 billion as of March 10 22:00 UST, down $900 million from four hours earlier.Circle has not yet released a statement detailing its reserves with each banking partner. Twelve months ago, Circle named BNY Melon the &#34;principal custodian&#34; of USDC reserves. Crypto businesses distancing themselves from Silvergate may have preferred Signature Bank, another Circle partner. Even that corporation fell 22% on Friday amid SVB banking fears. Tether, the largest stablecoin issuer, appears unaffected. Tether CTO Paolo Ardoino denied SVB exposure on Twitter.After SVB&#39;s collapse, market participants are selling USDC and DAI (a crypto-backed stablecoin mostly made of USDC reserves) for Tether&#39;s USDT in DeFi protocol Curve&#39;s 3pool. Ardoinio dubbed the pool activity a &#34;escape to safety&#34; on Twitter. DeFi Llama reports 53.3% Tether domination. Binance CEO Changpeng Zhao also stated that the world&#39;s largest crypto exchange had no Silicon Valley Bank exposure.

USDC Tumbles to $0.93 as Circle Reveals $3.3 Billion Held at SVB, Tether and Binance Not Exposed

ItsBitcoinWorld

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