• Circle has confirmed that wires initiated to remove balances have not been processed, leaving $3.3 billion of its USDC reserves at Silicon Valley Bank (SVB).
• Circle is joining other customers and depositors in calling for the continuity of SVB and will follow guidance provided by state and federal regulators.
• The company’s CSO and head of global policy called for an SVB rescue plan from the FDIC.
Circle Calls for Continuity of Silicon Valley Bank
Breaking news: Blockchain payment tech company Circle has disclosed that $3.3 billion of its USDC reserves remain at Silicon Valley Bank (SVB), as wires initiated on Thursday to remove balances have not yet been processed.
Circle Joins Other Customers in Calling for SVB Continuity
In a bid to provide transparency on the matter, Circle has joined other customers and depositors in calling for the continuity of SVB in the U.S. economy, stating they will follow the guidance provided by state and federal regulators.
Circle’s Chief Strategy Officer Calls For FDIC Rescue Plan
Adding to this statement, Circle’s chief strategy officer and head of global policy Dante Disparte called for an SVB rescue plan from the Federal Deposit Insurance Corporation (FDIC), noting that a lack thereof would have “broader implications” for businesses, banking, entrepreneurs and people who rely on a well-functioning U.S. banking system as a condition precedent of growing an economy.
Circle Protecting USDC From Black Swan Failure
A spokesperson from Circle also underscored that their firm is currently protecting USDC from a black swan failure in the U.S banking system, emphasizing that it is important to protect deposits held with banks outside of federally insured deposit insurance limits through diversification across several different institutions with separate legal entities around the world – including Silvergate which recently declared bankruptcy – as well as other large custodians such as Coinbase Custody and Fidelity Digital Assets Services LLC (FDAS).
In conclusion, Circle recognizes the importance of having stable partners within the banking sector to ensure financial security, especially during times like these where uncertainty is high due to external factors impacting economies worldwide – such as COVID-19 pandemic or political unrests; therefore they are joining other customers in demanding continuity from SVB while following all guidelines set forth by relevant regulatory bodies within each country they operate in order to protect their users’ assets against any kind financial risks or losses associated with their investments or deposits held with them through their platform services