The CEO and founder of Circle, Jeremy Allaire, said the company managed to access its funds held by collapsed Silicon Valley Bank.
On March 14th, Jeremy Allaire spoke to Bloomberg Markets about the recent developments and issues in the cryptocurrency and banking space.
It is worth noting that stablecoin issuer Circle had significant ties with collapsed Silicon Valley Bank.
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When asked about the company’s USDC reserves held with the collapsed SVB, Circle co-founder said the company had access to the funds since March 13th.
We were able to access those (reserves) yesterday and I believe if not everything then close to everything was able to clear.
Circle announced on March 11th that they had a $3.3 million reserves stack in Silicon Valley Bank following the announcement of the bank’s shutdown.
The announcement had a significant effect on the price of the Circle’s stablecoin USD Coin (USDC), even though the deposit with SVB represents less than 8% of the total USDC reserve.
USDC de-pegged shortly after the announcement. According to data, the price of the stablecoin dropped to a record low of $0.8774 on March 11th.
USDC has since recovered and reached its dollar peg. The recovery was triggered by the announcement by the Federal Deposit Insurance Corporation that all depositors with the fallen bank will access their reserves.
According to a January reserve report by Deloitte, USDC was over 100% collateralized. More than 80% of the stablecoin’s reserve consisted of short-dated US Treasury Bills, which is considered one of the safest investments globally.