With the closure of Silicon Valley Bank on Friday, all eyes turned to USDC issuer Circle. The closure of Silicon Valley, one of the organizations managing a quarter of the assets backing the $3 billion stablecoin, has had a profound impact on USDC. According to a statement late Friday, the issuer is awaiting a clear statement from federal banking regulators.
Circle Declares that it Awaits Clarification from the FDIC
The issuer declined to say how much cash is trapped at Silicon Valley Bank in its initial statement after a day of upheaval in the stablecoin market. However, the corporation and its stablecoin “continue to operate regularly,” it stated. On the other hand, USDC trades below its dollar peg on various exchanges.
About the Collapse of Silicon Valley Bank
The startup scene, which was heavily dependent on the tech-friendly lender, has been shaken by Silicon Valley Bank’s abrupt collapse, which is the second-biggest bank failure in American history. DeFi infrastructure like Curve’s 3pool and other elements of cryptocurrency relying on or linked to USDC have also been alarmed.