Stablecoin issuer Circle said late Friday that $3.3 billion in cash deposits remained at Silicon Valley Bank (SVB), the bank which was shut down by regulators after suffering a run on deposits. The sum represents some 8% of the total reserves backing its stablecoin USDC.
Silicon Valley Bank was one of the six banking partners where Circle held a part of the backing reserve assets of its $40 billion USDC stablecoin.
USDC is the second largest stablecoin on the market and a fundamental element of the crypto ecosystem. Concerned investors redeemed over $1 billion of USDC tokens over Friday, causing USDC to temporarily losing its dollar-peg on some exchanges and pushing the largest stablecoin swap pool on decentralized finance platform Curve into heavy imbalance.
