According to a tweet sent up by the American cryptocurrency corporation Circle on Friday, the Silicon Valley Bank collapsed lender held $3.3 billion of its $40 billion in USD Coin reserves.
The stablecoin company made its announcement following the Friday collapse of startup-focused SVB, the biggest bank failure since the 2008 financial crisis, which rocked the world markets and left billions of dollars belonging to businesses and investors stranded.
The struggles of SVB and the cryptocurrency-focused Silvergate, which this week reported plans to wind down operations and voluntarily liquidate, had traders on high alert this week for signs of contagion in the financial sector and beyond.
A “small percentage” of the USDC reserve deposits held at Silvergate, according to Boston-based Circle, have been transferred to its other banking partners.
As it waits to see how SVB’s receivership would effect its depositors, Circle said in another tweet on Friday that it and USDC are continuing to run properly. Some cryptocurrency companies, however, turned to Twitter to deny any exposure to the collapsed SVB.
Both Paolo Ardoino, the CEO of Tether, and the chief executive of cryptocurrency exchange Binance stated in a tweet on Friday that their companies had no exposure.
Both cryptocurrency exchange Gemini and stablecoin issuer Paxos tweeted that they have no connections to SVB.
