USDC Issuer Circle Says It 'Awaits Clarity' From FDIC on Silicon Valley Bank Collapse

The stablecoin issuer declined to state how much cash is tied up at the collapsed financial institution.

AccessTimeIconMar 11, 2023 at 12:05 a.m. UTC
Updated May 9, 2023 at 4:10 a.m. UTC

USDC issuer Circle Internet Financial said late Friday it "awaits clarity" from federal banking regulators on the status of its deposits at Silicon Valley Bank, one of the six financial institutions it said are responsible for managing one quarter of the assets backing its $43 billion stablecoin.

In its first statement following a day of chaos in crypto's stablecoin sector, Circle declined to specify exactly how much cash is stuck in Silicon Valley Bank. But it said the company and its stablecoin "continue to operate normally."

The sudden collapse of Silicon Valley Bank – the second-biggest bank failure in U.S. history – has roiled the startup landscape, which was largely reliant on the tech-friendly lender. But it has also spooked parts of crypto dependent on or tied up in USDC, including decentralized finance (DeFi) infrastructure such as Curve's 3pool. On some trading venues USDC is trading below its dollar peg.


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Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.

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