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.
Is another plan
FUD
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