Concerns are rising within the cryptocurrency industry following the revelation that $3.3 billion of the approximately $40 billion in USDC reserves remain at Silicon Valley Bank (SVB).
This news comes after wires initiated on Thursday to remove balances were not yet processed, indicating that a significant portion of the stablecoin’s reserves is still held by the bank. The lack of movement has sparked concerns about the transparency and stability of USDC, as well as the potential impact on the wider cryptocurrency market.
On Friday morning, the news of the collapse of Silicon Valley Bank (SVB) sent shockwaves through the financial world, making it the second-largest financial institution to fail in U.S. history. The fallout from SVB’s collapse has been significant, with the general cryptocurrency market experiencing a significant decline.
Digital assets, particularly stablecoins, have been hit hard by the news, with many investors and traders feeling the impact. The situation has raised concerns about the stability and resilience of the cryptocurrency market, with many experts calling for increased transparency and regulation to prevent such events from happening in the future.
In January, Circle, the crypto exchange platform, disclosed that it held approximately $9.88 billion in a regulated financial institution. These funds were earmarked by Circle to support the value of its stablecoin, USDC.
The move was part of an effort by the platform to increase transparency and provide greater assurance to investors about the stability of the USDC. By keeping the funds in a regulated financial institution, Circle, aimed to provide a secure and reliable backing for its stablecoin, helping to maintain its value and stability in the volatile cryptocurrency market.
As of the time of writing this article, USDC was trading in a bearish trend, as the USDC market had recorded a price decrease of 8.62% in the last 24 hours. The market capitalization of USDC was 37,343,043,041 USD, with a circulating supply of 40,928,368,086 USDC coins.
