USDC is the second-largest stablecoin on the market, with a $43 billion circulating supply that is fully backed by government bonds and cash-like assets.
According to Circle’s January reserve report, the firm held some $9.88 billion of cash deposited at regulated banks to back USDC’s value. According to Circle's website on March 10, cash deposits in the reserves amounted to $11.1 billion.
USDC’s banking partners included Silicon Valley Bank (SVB), the California-based bank that was taken over by regulators and shut down on Friday.
The full list of banks that held cash for Circle’s USDC are Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank (a division of Flagstar Bank, N.A.), Signature Bank, Silicon Valley Bank and Silvergate Bank. Circle also keeps some part of USDC reserves in a dedicated BlackRock fund.
Circle spokesperson said late Friday that SBV was one of the six banks that the firm used "for managing the approximately 25% portion of USDC reserves held in cash."
"While we await clarity on how the FDIC receivership of Silicon Valley Bank will impact its depositors, Circle and USDC continue to operate normally," according to the statement.
UPDATE (Mar. 10, 20:20 UTC): Adds comment from Simon Dixon, CEO of BnkToTheFuture, investor in Circle.
UPDATE (Mar. 11, 01:05 UTC): Adds comment from Circle spokesperson. Adds latest data about USDC reserves in cash.
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