Silicon Valley Bank's failure without a Federal rescue plan will have broader implications: circle's chief strategy officer.
USDC depegs from the US dollar. Source: CoinMarketCap
At the time of writing, USDC lost 3% of its value as it traded at $0.969. According to Dante Disparte, the chief strategy officer and head of global policy for Circle, SVB is critical to the US economy and warned that “its failure — without a Federal rescue plan — will have broader implications for business, banking and entrepreneurs,” adding:
“As with Silvergate, our teams have worked at speed to limit any exposure to banks. This includes a wire transfer request made before SVB's FDIC receivership. A $3.3 billion cash exposure remains - but we follow state and Federal regulatory guidance.”that Circle redeemed a net of $1.4 billion in USDC in the span of 8 hours. In an effort to reduce exposure, crypto companies including Coinbase and Jump Trading redeemed approximately $850 million and upto $138 million in USDC.
During the timeline, Circle’s chief financial officer Jeremy Fox-Geen had shared their intent to go public but planned on waiting for better market conditions. He added that the crypto industry needs more distance from the Terra and FTX implosions for public-market investors to re-evaluate the future of digital-assets businesses.
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