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Silicon Valley Bank’s exposure to crypto revealed by Circle to be $3.3 billion

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.

Patrick Huston
Patrick Huston
As a senior editor, Patrick is a professional who is in charge of putting out business news. As a senior editor, Patrick is likely to be in charge of the duties of junior editors and writers, make sure the content is correct and high-quality, and work with other departments to make sure the business news is published on time. Patrick knows a lot about business and the latest market trends. He uses this knowledge to choose and edit stories that are both interesting and useful to readers. He also works with reporters and analysts to come up with insightful pieces that help readers keep up with the latest business news. Patrick is a very important part of keeping the public informed and interested in important business issues. He is passionate about journalism and strives for excellence.

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