Stablecoin issuer Circle Internet Financial said Monday the US$3.3 billion in USD Coin (USDC) reserve deposits held at the failed Silicon Valley Bank will be fully recovered when banks open on Monday in the U.S., reflecting a statement from financial authorities.
The US$3.3 billion accounts for about 8% of the total USDC reserve, Circle said in a statement, adding that it held no cash reserves at Signature Bank, which was also taken over at the weekend by the Federal Deposit Insurance Corporation.
Circle also announced its new partnership with New Jersey-based Cross River Bank, through which automated USDC minting and redemption for customers will take place starting Monday, March 13, 2023.
Circle’s USDC stablecoin broke its dollar peg over the weekend after it revealed its reserves at Silicon Valley Bank, falling as low as US$0.8774. It has since recovered to US$0.9939 as of Monday afternoon in Asia.
Silicon Valley Bank (SVB) and Signature Bank, two key lenders to the crypto industry, were shut down and taken over by U.S. regulators to prevent a systemic threat to the broader banking industry. SVB, which held more than US$200 billion in assets, is the largest banking failure since the 2008 financial crisis.
USDC is currently the fifth largest cryptocurrency and the second largest stablecoin on CoinMarketCap, with over US$40 billion in market capitalization.
