The CEO of Circle, Jeremy Allaire, says that they are able to access $3.3 billion of USDC reserves at SVB. Unfortunately, their earlier disclosure that 3.3 billion worth of USDC reserves were held with Silicon Valley Bank resulted in its losing market shares to its competitor USDT. However, it is very good news for the crypto industry and those who have invested their money in USDC.
Circle got access to their 3.3 billion USD worth of USDC reserves
Jeremy Allaire, Circle’s CEO and co-founder, says that since March 13, i.e. last Monday, they have been able to access their 3.3 billion of funds held with the recently collapsed bank, Silicon Valley Bank. While discussing the matter with Bloomberg Markets yesterday, Allaire said that he believed that if not everything, but very close to everything, was able to clear from the failed lender.
USD Coin, a popular stablecoin issued by Circle – briefly depegged following news that 3.3 billion USD out of 40 billion USD of its cash reserve were stuck at one of the largest banks in the world, Silicon Valley Bank, which recently announced that they are going to stop their operations.
According to a report published by TradingView, the stablecoin’s dollar peg has since recovered, but mass redemption of the USD coin has resulted in the downfall of their market cap, resulting in a loss of 10 per cent since March 11.
On the other hand, throughout the same timeframe, USDC peer Tether has recorded a slight increase in its market cap since March 11, climbing over 1 per cent to 73.03 billion USD.
Temporarily locked funds had a hard impact on USDC
As you know, recently, CEO says Circle is able to access $3.3 billion of USDC reserves at SVB. However, during the timeframe when the funds were temporarily locked at SVB, it had a major effect on USDC, even though the 3.3 billion worth of assets represented less than 8 per cent of the total token reserves as per the January reserve report.
The reports also asserted the USD Coin was over 100 per cent collateralised with more than 80 per cent of its reserve consisting of short-dated US treasury Bills, which are highly liquid assets that are direct obligations of the US government and considered one of the safe investments globally.
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