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

Mubite Officially Launches as a Global Leader in Crypto Prop Trading

Prague, Czech Republic, October 6, 2025, ZEX PR WIRE— The future of funded crypto trading…

12 hours ago

CZ Effect: Binance Lists Aster (ASTER) With Seed Tag After Weeks Of Hype

Aster’s native token, ASTER, has ridden a powerful endorsement cycle after Changpeng “CZ” Zhao publicly…

18 hours ago

Verto Establishes DIFC Hub to Enable Faster, Smarter B2B Payments Across Africa and Emerging Markets

UAE now has a payment partner that unlocks Africa’s growing economic opportunity DUBAI, UAE, 6…

24 hours ago

Guinness World Records Attempt in Forex Industry is announced

Dubai, UAE, 5th October, 2025, ZEX PR WIRE, Forex Expo Dubai, the Middle East’s largest…

24 hours ago

Reliable Airport Taxi Service: Guaranteed Pickups, No Delays

London, England, 5th October 2025, ZEX PR WIRE, In today’s travel landscape, reliability has become…

2 days ago

Forex Expo Dubai 2025 Conference to Feature 150+ Global FX and Fintech Leaders

Part of the region’s largest forex and fintech gathering, the two-day conference on 6–7 October…

4 days ago