Circle USDC/USD deposited an undisclosed sum of cash in the now defunct Silicon Valley Bank SIVBfor which one of the US-regulated financial institutions was responsible Holding the reserves of the platformaccording to a USDC reserve report.
The report said Circle listed SVB along with other banks as custodians of its funds.
During the second half of the week, Silicon Valley Bank’s share price plummeted and the financial institution needed an injection of capital to stay afloat.
As a result, California regulators shut down the bank, sparking widespread concern in the banking sector.
The closure of Silicon Valley Bank has hit one of the strongest players in the world cryptocurrency Industry as Circle had deposited undisclosed amounts of cash with the bank.
The USDC reserve report also listed other financial institutions such as Silvergate Bank S.I And Bank of New York Mellon Corp BK as custodian of Circle funds.
However, the report did not specify the exact amount of capital Circle had deposited with Silicon Valley Bank.
As of now, Circle has not commented on the bank’s closure or the amount of capital they have held in the bank.
Notably, the report was released on March 2, just days before the bank shut down.
Meanwhile, Riot Blockchain CEO Jason Les told Benzinga that the Bitcoin BTC/USD The company has no exposure to SVB Financial.
Continue reading: Say goodbye to traditional banking with Binance Colombia prepaid crypto card
Photo: T Schneider via Shutterstock
[ad_2]
Source story
