<span style="font-weight: 400">Blockchain payment tech company and USDC issuer, Circle, has confirmed that wires initiated on Thursday to remove balances from Silicon Valley Bank (SVB) have not yet been processed, leaving $3.3 Billion of its $40 Billion USDC reserves tied up at the now-shuttered SVB. </span>

[embed]https://twitter.com/circle/status/1634391505988206592?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1634391708837330945%7Ctwgr%5E51f4fdc806fc56971c682947d87e08cd88cd56f5%7Ctwcon%5Es2_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fcircle-discloses-3-3b-tied-up-at-silicon-valley-bank[/embed]

<span style="font-weight: 400">This disclosure follows concerns over USDC late last week, when Circle revealed that $8.6 billion, or roughly 20% of its reserves, was held in several financial institutions, including bankrupted Silvergate and SVB.</span>
<h2><b>Circle Calls for Continuity of Silicon Valley Bank (SVB)</b></h2>
<span style="font-weight: 400"><a href="https://www.cryptoknowmics.com/news/circle-and-spac-concord-mutually-end-their-commercial-partnership/">Circle</a> has called for the continuity of SVB, stating that it is important for the US economy. The company’s chief strategy officer has also called for an SVB rescue plan from the Federal Deposit Insurance Corporation (FDIC), stating that a failure of the bank would have broader implications for business, banking, and entrepreneurs.</span>

<span style="font-weight: 400">According to a Circle spokesperson, SVB is one of six banking partners used by the company for managing approximately 25% of USDC reserves held in cash. </span><span style="font-weight: 400">While the spokesperson awaits clarity on how the FDIC receivership of SVB will impact its depositors, Circle and USDC continue to operate normally.</span>
<h2><b>SVB Shuts Down</b></h2>
<span style="font-weight: 400">California’s financial watchdog has shut down Silicon Valley Bank, making it the first FDIC-insured bank to fail in 2023. Although the reason for the closure remains unclear, the California regulator appointed the FDIC as the receiver to protect insured deposits.</span>

<span style="font-weight: 400">Silicon Valley Bank (SVB) has been a top-performing bank in the United States and has offered financial services to numerous cryptocurrency-focused venture firms, such as Andreessen Horowitz and Sequoia.</span>

Circle Calls for Continuity of Silicon Valley Bank (SVB)

Circle confirmed that wires initiated to remove balances from Silicon Valley Bank have not yet been processed, leaving $3.3 Billion of its $40 Billion USDC.

Circle Calls for Continuity of Silicon Valley Bank (SVB)

Top Picks