• About
  • Privacy Policy
  • Editorial Principles
  • Why to trust us
  • Contact
Monday, October 2, 2023
The 24 Hours
  • Home
  • Business
  • Technology
  • Scandals
  • Politics
Morning News
Home Business

Crypto group Circle admits $3.3bn exposure to failed Silicon Valley Bank

admin by admin
March 12, 2023
in Business
0
Crypto group Circle admits $3.3bn exposure to failed Silicon Valley Bank
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

READ ALSO

Conservative mistakes helped Pedro Sánchez halt Vox’s march in Spain

Santiago Abascal, Spain’s hard-right potential kingmaker

Circle, one of the world’s largest stablecoins, has $3.3 billion in reserves trapped in Silicon Valley banks, and the token’s value has plummeted amid crypto market turmoil from the collapse of two US banks this week. said to be causing a decline in

The company’s USDC crypto token has lost its peg to the dollar following an announcement from Circle overnight on Friday.

US exchange Coinbase said it has temporarily suspended exchanges between USDC and US dollars. Rival exchange Binance also said it would suspend the automatic conversion of USDC to BUSD, the Binance-branded stablecoin.

Circle called for an emergency federal bailout plan for SVB.

Collapse of the SVB, the second largest The bank failures in U.S. history have begun to spread to customers, further hitting the crypto market, which is still recovering from last year’s crisis of confidence, and taking down many high-profile companies.

US bank Silvergate, which won a cryptocurrency client earlier this week, said: relax Operations following the execution of a deposit.

Stablecoins play a key role in bridging the traditional and crypto markets, with traders using them like cash and cryptocurrency dollars to transact. Most track the value of major currencies such as the dollar one-to-one. Stablecoin operators typically earn interest on the token’s underlying traditional asset, increasing revenue as circulation increases.

Circle’s USD Coin is the second largest stablecoin in the crypto market, with $42 billion in circulation, according to company data.

The company said it held six banking partners, including SVB, and a quarter of its USDC reserves in cash. Most of the $40 billion reserves are held in US Treasuries and other US banks.

In a blog post on Saturday, the Circle said USDC liquidity operations will resume when banks open on Monday. The company added that if SVB does not return 100% of the deposit, it will use the company’s resources, including external capital if necessary.

“It’s not just cryptocurrencies themselves that are under pressure. Currently, the banks that support the industry itself are failing. It’s a way in and out,” said Charlie Cooper, former chief of the Commodity Futures Trading Commission, a US regulator.

“A threat to even reserve forces [stablecoin] The model questions the feasibility of the intersection of cryptocurrencies and traditional finance,” he said.

Circle Chief Strategy Officer Dante Disparte warned on Saturday that the company is protecting stablecoins from a “black swan failure in the US banking system.”

“SVB is a critical bank to the US economy and without a federal bailout plan, its failure would have far-reaching implications for businesses, banks and entrepreneurs,” he tweeted.

Circle said it will continue to operate as normal pending clarification from U.S. regulators on how the SVB bankruptcy will affect its depositors Circle and USDC. Did not immediately respond to a request for comment.

According to industry price tracking website CoinMarketCap, USDC tokens have traded up to 88 cents per dollar since the SVB collapse.

Circle revealed it held cash with several US regulated financial institutions, including Silvergate and SVB.

Tags: 33bnAdmitsbankcirclecryptoExposurefailedGroupSiliconValley

Related Posts

Conservative mistakes helped Pedro Sánchez halt Vox’s march in Spain
Business

Conservative mistakes helped Pedro Sánchez halt Vox’s march in Spain

July 24, 2023
Santiago Abascal, Spain’s hard-right potential kingmaker
Business

Santiago Abascal, Spain’s hard-right potential kingmaker

July 22, 2023
China imports record volumes of Russian oil in first half of 2023
Business

China imports record volumes of Russian oil in first half of 2023

July 20, 2023
LinkedIn’s Ryan Roslansky: ‘You can only learn how to be a CEO by being a CEO’
Business

LinkedIn’s Ryan Roslansky: ‘You can only learn how to be a CEO by being a CEO’

July 16, 2023
Can Cornwall get a slice of the lithium revolution?
Business

Can Cornwall get a slice of the lithium revolution?

July 14, 2023
Nvidia in talks to be an anchor investor in Arm IPO
Business

Nvidia in talks to be an anchor investor in Arm IPO

July 12, 2023
Next Post
Dr. Fauci Isn’t Putting Up With Republican Insanity

Dr. Fauci Isn't Putting Up With Republican Insanity

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

Trump Appears To Be Terrified Of Special Counsel Jack Smith

Trump Appears To Be Terrified Of Special Counsel Jack Smith

January 15, 2023
Taylor Swift Gives Update on Eras Tour Hand Injury 

Taylor Swift Gives Update on Eras Tour Hand Injury 

April 25, 2023
Kendall Jenner’s Bikini Body Photos

Kendall Jenner’s Bikini Body Photos

May 13, 2023
Sister Wives’ Robyn Tells Family ‘Leave Me the Hell Out’ of Drama

Sister Wives’ Robyn Tells Family ‘Leave Me the Hell Out’ of Drama

January 9, 2023
Is ChatGPT a ‘virus that has been released into the wild’? • TechCrunch

Is ChatGPT a ‘virus that has been released into the wild’? • TechCrunch

December 10, 2022

EDITOR'S PICK

Trump Gets Some Brutal Feedback From GOP Iowa Voters

Trump Gets Some Brutal Feedback From GOP Iowa Voters

June 4, 2023
Republicans Are Having To Bus In People To Protest Trump’s Arraignment

Republicans Are Having To Bus In People To Protest Trump’s Arraignment

June 12, 2023
Netflix axes its basic plan in Canada, IRL shuts down and Shein’s influencer stunt backfires

Netflix axes its basic plan in Canada, IRL shuts down and Shein’s influencer stunt backfires

July 2, 2023
LinkedIn’s Ryan Roslansky: ‘You can only learn how to be a CEO by being a CEO’

LinkedIn’s Ryan Roslansky: ‘You can only learn how to be a CEO by being a CEO’

July 16, 2023

About

The 24 Hours

The24Hours, our mission is to provide unfiltered, unbiased, fact-based news blog that empowers rather than unsettles.

Categories

  • Business
  • Technology
  • Scandals
  • Politics

Quick Links

  • About The24Hours
  • Contact Us
  • Editorial Principles
  • Why to trust us
  • Privacy Policy
  • Sitemap

Follow Us

  • Facebook
  • Twitter
  • Instagram
  • LinkedIn
  • Privacy Policy
  • Contact Us
  • Sitemap

  • Home
  • Politics
  • Business
  • Technology
  • Scandals

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More

Accept Decline Cookie Settings
I consent to the use of following cookies:
Cookie Declaration About Cookies
Necessary (0) Marketing (0) Analytics (0) Preferences (0) Unclassified (0)
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
We do not use cookies of this type.
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
We do not use cookies of this type.
Analytics cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously.
We do not use cookies of this type.
Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.
We do not use cookies of this type.
Unclassified cookies are cookies that we are in the process of classifying, together with the providers of individual cookies.
We do not use cookies of this type.
Cookies are small text files that can be used by websites to make a user's experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies we need your permission. This site uses different types of cookies. Some cookies are placed by third party services that appear on our pages.
Cookie Settings