Circle's January report was reviewed and certified by Deloitte, with roughly 20% of its reserves held in cash by US-regulated financial institutions.
to its latest audit report from January. Circle’s reserves are held in a number of regulated financial institutions in the country, including Silvergate, Silicon Valley Bank , and Bank of New York Mellon.
According to the report, the amount held in cash by U.S. regulated financial institutions was $8.6 billion as of Jan. 31, representing roughly 20% of its reserves. Another $33.6 billion of its reserves are in U.S Treasurys managed by BlackRock through the Circle Reserve Fund, registered as a government money market fund and with funds held by BNY Mellon."Silicon Valley Bank is one of six banking partners Circle uses for managing the approximately 25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of Silicon Valley Bank will impact its depositors, Circle and USDC continue to operate normally.
SVB is one of the biggest lenders in the United States and a major player for venture-backed companies. Theby the California Department of Financial Protection and Innovation, fueling fears about its future. The Federal Deposit Insurance Corporation was appointed as the receiver to protect insured deposits.
Dave Weisberger, co-founder and CEO of algorithmic-trading platform CoinRoutes, told Cointelegraph that the “fodder for a broader contagion event is there” and that “the spark could be materializing,” putting at risk many startups and tech companies in the country — a critical sector for the “sustained growth of the American economy.”“A good many tech firms — startups but also Big Tech companies — have deep exposure to SVB.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pairs in Focus This Week \u2013 EUR/USD, GBP/USD, USD/JPYGet the Forex Forecast using fundamentals, sentiment, and technical position analyses for major pairs for the week of March 12th, 2022 here.
Read more »
Circle's exposure to U.S. banks could top $9BRoughly 20% of Circle's reserves are held in a number of banks in the United States, including Silicon Valley Bank, and Bank of New York (BNY) Mellon.
Read more »
Circle plans to cover missing liquidity in Silicon Valley Bank with corporate fundsAccording to Circle, USDC liquidity operations will 'resume as normal when banks open on Monday morning in the United States,' enabling USDC redemption at 1:1 with the U.S. dollar.
Read more »
EUR/USD climbs on high inflation data in Germany, as the USD sinks post US NFPThe EUR/USD rose 0.45% late in the New York session in a volatile trading day, with Wall Street set to register substantial losses blamed on a US bank
Read more »
Is Circle's USDC Stablecoin Crisis a Blessing in Disguise for Bitcoin?The recent crisis surrounding Circle's USD Coin (USDC) stablecoin may have inadvertently boosted Bitcoin, as people are turning to it to achieve a synthetic USD due to the collapse of USDC
Read more »
USDC Issuer Circle Says it 'Awaits Clarity' From FDIC on Silicon Valley Bank CollapseCircle declined to specify how much of the cash backing USDC is stuck at Silicon Valley Bank in its first statement since the tech lender's collapse. realDannyNelson reports
Read more »