Circle Chooses Cross River Bank To Be New Banking Partner After Risking $3.3B Reserves
Key Points:
- After overcoming the crisis of reserve risk, Circle chose Cross River Bank as its new companion.
- Automated USDC minting and redemption for customers through Cross River Bank, starting March 2023.
- The $3.3 billion USDC reserve deposits held at Silicon Valley Bank will be complete when US banks open tomorrow morning.
Circle announced the automatic minting and redemption of USDC for customers through Cross River Bank after weathering the USDC reserve risk crisis at the failed Silicon Valley Bank.
All depositors at Silicon Valley Bank and Signature Bank, which were shut down by regulators today, will be compensated following the declaration made jointly by US prudential authorities and Treasury Secretary Janet Yellen.
When American banks open tomorrow morning, the $3.3 billion USDC reserve deposit held by Silicon Valley Bank, or around 8% of the total USDC reserve, will be completely available. At Signature Bank, there were no USDC cash reserves.
USDC was the stablecoin hit hardest last week by the collapse of Silicon Valley Bank after it announced it had a $3.3 billion exposure to the collapsed bank. This number is many times higher than the estimated $1 billion, making the run away from USDC strong. USDC, at one point, recorded a peg of $0.93, the lowest level in its history.
Now stablecoin USDC has regained its peg levels over the weekend after many positive market moves.
Circle also stated in the announcement that it has selected Cross River Bank as its new partner for the automatic USDC minting and redemption for customers starting today. Extended relationships also include the exchange of USDC to BNY Mellon.
According to the latest data updated by Nansen, stablecoin issuer Circle minted another $407.8 million USDC. This is the largest minting in the past week, bringing the net change to $463.8 million.
On March 11, 2023, to bolster user confidence, the Circle shared details about the USDC reserve, stating that the reserve is now 77% collateralized (approximately $32. 4 billion) in short-term US Treasury bills.
US Treasury bills are the most liquid asset in the world and are a direct obligation of the US government. These reserves are held by BNY Mellon and BlackRock performs active liquidity and asset management.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
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Circle Chooses Cross River Bank To Be New Banking Partner After Risking $3.3B Reserves
Key Points:
- After overcoming the crisis of reserve risk, Circle chose Cross River Bank as its new companion.
- Automated USDC minting and redemption for customers through Cross River Bank, starting March 2023.
- The $3.3 billion USDC reserve deposits held at Silicon Valley Bank will be complete when US banks open tomorrow morning.
Circle announced the automatic minting and redemption of USDC for customers through Cross River Bank after weathering the USDC reserve risk crisis at the failed Silicon Valley Bank.
All depositors at Silicon Valley Bank and Signature Bank, which were shut down by regulators today, will be compensated following the declaration made jointly by US prudential authorities and Treasury Secretary Janet Yellen.
When American banks open tomorrow morning, the $3.3 billion USDC reserve deposit held by Silicon Valley Bank, or around 8% of the total USDC reserve, will be completely available. At Signature Bank, there were no USDC cash reserves.
USDC was the stablecoin hit hardest last week by the collapse of Silicon Valley Bank after it announced it had a $3.3 billion exposure to the collapsed bank. This number is many times higher than the estimated $1 billion, making the run away from USDC strong. USDC, at one point, recorded a peg of $0.93, the lowest level in its history.
Now stablecoin USDC has regained its peg levels over the weekend after many positive market moves.
Circle also stated in the announcement that it has selected Cross River Bank as its new partner for the automatic USDC minting and redemption for customers starting today. Extended relationships also include the exchange of USDC to BNY Mellon.
According to the latest data updated by Nansen, stablecoin issuer Circle minted another $407.8 million USDC. This is the largest minting in the past week, bringing the net change to $463.8 million.
On March 11, 2023, to bolster user confidence, the Circle shared details about the USDC reserve, stating that the reserve is now 77% collateralized (approximately $32. 4 billion) in short-term US Treasury bills.
US Treasury bills are the most liquid asset in the world and are a direct obligation of the US government. These reserves are held by BNY Mellon and BlackRock performs active liquidity and asset management.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
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