Circle Revealed That It Had $3.3 Billion In USDC Collateral On Silicon Valley Bank
- After the impact of Silicon Valley Bank, the USDC price fell precipitously, going below $0.97 in under 24 hours.
- Circle, a stablecoin provider, stated that the failure of Silicon Valley Bank harmed $3.3 billion, representing for 8.25% of the total $40 billion in assets guaranteed by USDC.
The stablecoin USDC is heavily pegged as a result of the Silicon Valley Bank lawsuit.
USDC’s value dropped below $0.96 when parent firm Circle acknowledged to having communication with Silicon Valley Bank. Circle has verified that it has $3.3 billion in USDC collateral on deposit with Silicon Valley Bank. Following a period of quiet and pressure from the crypto community, stablecoin startup Circle said that the amount affected by Silicon Valley Bank’s failure was $ 3.3 billion, amounting for 8.25% of total assets. USDC will receive $ 40 billion in collateral, well beyond earlier estimates.
Circle stated that it will continue to watch the issue and the US government’s handling of the asset withdrawal. The quick collapse of Silicon Valley Bank, the 16th largest commercial bank in the United States, with assets worth more than $200 billion USD, has gained the most attention in the past 24 hours in the US stock market and cryptocurrency business.
When crypto investors flee to USDT, both USDC and BUSD are severely depegged. The USDC price has fallen to $0.95 (at the writing time), the lowest since the stablecoin’s inception in 2018. Silicon Valley Bank’s failure is the second largest in the history of the US financial industry, and the most devastating since the 2008 financial crisis.
The impact of the aforementioned occurrence has yet to be properly evaluated, owing to the danger of a spillover effect for other big banks, as well as people and companies depositing money with Silicon Valley Bank. Observers are particularly concerned about the idea of crypto firms holding money above, because Silicon Valley Bank is a brand synonymous with providing services to the world’s technology startups and investment funds. Silicon Valley is the United States’ technological and development center.
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