Stablecoin issuer Circle said late Friday that $3.3 billion in money deposits remained at Silicon Valley Financial institution (SIVB), the lender which was shut down earlier in the day by regulators after struggling a run on deposits. The sum represents some 8% of the whole reserves backing Circle’s stablecoin USDC.
Silicon Valley Financial institution was one of many six banking companions the place Circle held part of the reserve property backing its $40 billion USDC stablecoin.
USDC is the second largest stablecoin available on the market and a elementary aspect of the crypto ecosystem. Involved buyers redeemed over $1 billion of USDC tokens over Friday, inflicting USDC to briefly losing its dollar-peg on some exchanges and pushing the most important stablecoin swap pool on decentralized finance platform Curve into heavy imbalance.
At press time, USDC fell to 0.945 USDT, the most important dollar-pegged stablecoin, on crypto trade Kraken.
