- American bank Cross River became a new employee
- And SVB will fully refund deposits in USDC for $3.3 billion
Circle Internet Financial statedthat the bankrupt Silicon Valley Bank will fully refund their reserve deposits in USDC in the amount of $3.3 billion. These funds represent about 8% of the company’s total reserve.
In a press release, Circle emphasized that they have no cash reserves at Signature Bank, a bank that was closed this weekend and taken over by the FDIC (Federal Deposit Insurance Corporation). This means that the issuer’s liquidity is safe.
Now Circle has found a new partner in New Jersey’s Cross River Bank. Starting March 13, this organization will automatically issue and redeem USDC for clients.
Circle’s USDC stablecoin lost its dollar peg over the weekend. This happened after Circle made public their holdings at Silicon Valley Bank. But by Monday, the stablecoin had recovered to $0.9939. Also against the backdrop of calming news, Bitcoin rose by 9%.
Silicon Valley Bank (SVB) and Signature Bank are the two key lenders to the crypto industry. US regulators shut them down over the weekend to prevent systemic risk to the wider banking industry. SVB Bank has over $200 billion in assets and was the biggest bankrupt since the 2008 financial crisis.
USDC is now the fifth largest cryptocurrency and the second largest stablecoin by volume.
