Late Friday night, the USDC issuer Circle Internet Finance released a statement saying that it “awaits clarity” from federal banking regulators regarding the standing of its accounts at Silicon Valley Bank. Silicon Valley Bank is one of the six financial institutions that USDC issuer Circle Internet Financial stated are responsible for managing one quarter of the assets backing its $43 billion stablecoin.
Circle Internet Financial said that Silicon Valley Bank is one of the institutions responsible for managing one quarter of the assets. The statement from Circle Internet Finance was released in the late afternoon on Friday.
Circle did not clarify exactly how much cash is stuck in Silicon Valley Bank in its first statement following a day of mayhem in the stablecoin portion of the cryptocurrency market. The statement came after a day of mayhem in the cryptocurrency industry. But, according to the statement, both the firm and its stablecoin “continue to operate routinely.”
The sudden failure of Silicon Valley Bank, which was the second-largest bank failure in the history of the United States, has jolted the landscape of the startup industry, which was primarily reliant on the tech-friendly lender. This was the second-largest bank failure in the history of the United States.
One of the crypto assets that was thrown into disarray as a direct result of this occurrence was decentralized financial infrastructure. One example of this type of crypto asset is Curve’s 3pool. The values of USDC are now trading at a discount to their dollar peg on a number of different trading markets.
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