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Circle, the operator of one of the world’s largest stablecoins, has said $3.3bn of its reserves are trapped in Silicon Valley Bank, triggering a fall in the value of its The $3.3B USDC reserve deposit held at Silicon Valley Bank, about 8% of the USDC total reserve, will be fully available when U.S. banks open tomorrow morning. No USDC stablecoin issuer Circle has claimed that it will “cover any shortfall” caused as a result of the $3.3 billion in its funds held by the collapsed Silicon Valley Bank. Stablecoin issuer Circle has announced that it will cover any missing liquidity in Silicon Valley Bank using corporate funds if necessary. Stablecoin issuer Circle said late Friday that $3.3 billion in cash deposits remained at Silicon Valley Bank (SIVB), the lender that was shut down earlier in the day by USDC issuer Circle has pledged to cover any shortfall in the stablecoin’s reserves if it does not receive the entirety of the $3.3 billion held at now-collapsed Silicon Circle says it is confident it will recover $3.3 billion in reserves held at Silicon Valley Bank. The announcement Saturday (March 11) led Circle’s USDC stablecoin to recover Circle confirmed that $3.3 billion of its $40 billion of USDC reserves remain at Silicon Valley Bank, following news of its shutdown by California’s financial watchdog.

Circle USDC Reveals Commitment to Cover Silicon Valley Bank Shortfall with External Capital

In a move to reassure the market and maintain the peg of its USDC stablecoin, Circle, the operator of one of the world’s largest stablecoins, has announced its commitment to cover any shortfall resulting from the Silicon Valley Bank (SVB) collapse. The company confirmed that $3.3 billion of its $40 billion of USDC reserves remain at Silicon Valley Bank, following news of its shutdown by California’s financial watchdog.

The situation initially triggered a fall in the value of USDC, as concerns arose about the stability of the stablecoin. To address these concerns, Stablecoin issuer Circle has announced that it will cover any missing liquidity in Silicon Valley Bank using corporate funds if necessary. USDC issuer Circle has pledged to cover any shortfall in the stablecoin’s reserves if it does not receive the entirety of the $3.3 billion held at now-collapsed Silicon Valley Bank.

Circle says it is confident it will recover $3.3 billion in reserves held at Silicon Valley Bank. The announcement Saturday (March 11) led Circle’s USDC stablecoin to recover. Stablecoin issuer Circle said late Friday that $3.3 billion in cash deposits remained at Silicon Valley Bank (SIVB), the lender that was shut down earlier in the day.

The $3.3B USDC reserve deposit held at Silicon Valley Bank, about 8% of the USDC total reserve, will be fully available when U.S. banks open tomorrow morning. No USDC stablecoin issuer Circle has claimed that it will “cover any shortfall” caused as a result of the $3.3 billion in its funds held by the collapsed Silicon Valley Bank. This commitment signifies Circle's determination to uphold the stability of USDC and maintain confidence in the broader cryptocurrency market. By using external capital to cover any potential losses, Circle aims to mitigate the impact of the SVB situation and ensure that USDC remains a reliable and trustworthy stablecoin.

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