Home CryptocurrencyAltcoin Circle’s CEO “has access” to $3.3 billion in USDC reserves at Silicon Valley Bank

Circle’s CEO “has access” to $3.3 billion in USDC reserves at Silicon Valley Bank

by SuperiorInvest

Circle CEO and co-founder Jeremy Allaire confirmed that as of March 13, the stablecoin issuer had “access” to its $3.3 billion in funds held at the collapsed Silicon Valley Bank (SVB).

In an interview with Bloomberg Markets on March 14, Allaire said he believed “if not everything, almost everything was able to be cleaned up” from the failed lender.

USD coins (USDC) — stablecoin issued by Circle — short tied following messages that its cash reserves were $3.3 billion stuck to SVB.

Pegged stablecoin dollar has since recoveredbut bulk buybacks of USDC have driven the stablecoin’s market cap down nearly 10% since March 11, according to TradingView.

USDC market cap from March 8 to March 14. Source: TradingView

Meanwhile, over the same time frame, USDC peer Tether (USDT) has seen its market capitalization rise slightly, up more than 1% to $73.03 billion since March 11.

Related: USDC debugged for Silicon Valley Bank, but won’t default

The temporarily locked funds had a significant impact on USDC, as the $3.3 billion represented less than 8% of the token’s reserves according to its January reserve. message released on March 2.

The report claimed that the USDC was more than 100% collateralized with more than 80% of the reserve consisting of short-term United States Treasury bills – highly liquid assets that are direct obligations of the US government and considered one of the safest investments in the world.

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