reserves are still stuck at Silicon Valley Bank, we can confirm that $3.3 billion worth of USDC reserves are currently exposed,” Circle said in the tweet.
The news caused panic in the cryptocurrency market, with USDC depegging and falling 8% to hit lows of $0.91 on Saturday morning. This is a significant drop from its usual peg of $1.
SVB is currently under FDIC receivership after its collapse, which has left many investors and customers worried about their funds. The bank was known for its involvement in the cryptocurrency industry, and its collapse has sent shockwaves through the market.
Circle has assured its customers that their funds are safe and that it is working to resolve the issue as soon as possible. The company has also stated that it will be transparent about any updates regarding the situation.
The news has raised concerns about the stability of stablecoins, which are supposed to be pegged to a stable asset such as the US dollar. The exposure of USDC reserves at SVB has highlighted the risks associated with stablecoins and the need for greater transparency and regulation in the industry.
The cryptocurrency market has been volatile in recent weeks, with Bitcoin and other cryptocurrencies experiencing significant price fluctuations. The news about USDC and SVB is likely to add to the uncertainty and volatility in the market.
