Categories: MarketsMenafn

Circle Reports Clearing USDC Backlog After Exposure to Defunct Bank

Circle, the issuer of the USDC stablecoin, recently reported on its exposure to Silicon Valley Bank (SVB) and its progress in clearing its backlog of minting and redemption requests for the stablecoin. This report comes after USDC investors panicked upon hearing about Circle’s connection to the now-defunct bank.

In its latest report on USDC Reserves, Circle confirmed that it held 8% of USDC reserves, equivalent to over $3 billion, at SVB. The bank’s closure and subsequent seizure of deposits led to a massive outflow of USDC reserves, causing the stablecoin to de-peg from its dollar value and hit a record low.

However, Circle’s recent statement indicated that it had made significant progress in clearing its backlog of USDC requests, including minting almost $800 million and redeeming $3.8 billion. In addition, the issuer firm acknowledged the support and patience of its customers during this challenging period.

To circumvent the situation, Circle deepened its partnership with the Bank of New York Mellon and collaborated with a new banking partner, Cross River Bank, to facilitate US and international transfers.

Before its closure, SVB had announced its plan to raise $2.25 billion to boost its balance sheet after suffering a $1.8 billion loss from asset sales.

However, the bank’s efforts to raise capital failed, leading to its closure and marking the second-largest implosion of a financial firm in the US.

Circle’s latest report on USDC Reserves and attestation from Deloitte, a global audit company, confirmed the connection to SVB. 

However, Circle’s progress in clearing its backlog of USDC requests and its strategic partnerships with BNY Mellon and Cross River Bank offer hope for a brighter future for the stablecoin.

The post Circle Reports Clearing USDC Backlog After Exposure to Defunct Bank appeared first on CryptoMode.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

Ethereum Price Prediction: Can ETH Sustain Its Bullish Momentum as Price Surges 15%?

Ethereum is back in the spotlight, not for explosive price action, although it has made…

10 hours ago

Ajman Bank Successfully Prices USD 500 million Inaugural 5 Year Sukuk

Ajman, UAE, 25th April 2025, Ajman Bank P.J.S.C. (“Ajman Bank” or “the Bank”), the first Islamic…

19 hours ago

The Rise of Autonomous Finance: How 9M is turning AI into a fully operational investment system

The Rise of Autonomous Finance: How 9M is turning AI into a fully operational investment…

19 hours ago

Echo Launches Real Unique Tokenomics with Real Yield in USDC

Douglas, Isle of Man, 25th April 2025, ZEX PR WIRE, Echo is about to launch…

20 hours ago

World of Dypians Wins $450K in BNB Chain’s Support Program and Announces Monumental New Features

Tortola, BVI, 25th April 2025, ZEX PR WIRE, World of Dypians (WoD), a highly immersive…

21 hours ago

Hyperliquid Price Analysis: HYPER Eyes $20 as Price Tests Critical Resistance

Hyperliquid (HYPE) has staged an impressive climb, doubling in price since its low of $9.30 on…

22 hours ago