Circle says USDC operations unaffected by SVB, Signature closures

The closure of Silicon Valley Bank and Signature Bank won’t impact Circle’s USDC operations.

The $3.3 cardinal USDC reserve deposit held astatine Silicon Valley Bank volition beryllium afloat disposable erstwhile U.S. banks unfastened connected Monday morning, according to the company’s announcement. The institution said it had nary USDC currency reserves astatine Signature Bank.

However, Circle utilized Signature Bank’s real-time colony web SigNet to process minting and redemption. The company’s CEO Jeremy Allaire said that Circle would rely connected settlements done BNY Mellon starting Monday. In a abstracted announcement, Allaire besides said that Circle established a caller concern for automated colony with Cross River Bank.

USDC regained its peg aft trading astatine astir $0.917 past week. The stablecoin mislaid its peg aft Circle announced that it held 8% of USDC’s full reserve with Silicon Valley Bank, sparking an unprecedented complaint of redemptions.

The institution reiterated that USDC was a regulated outgo token and arsenic a effect remains 1:1 redeemable with the U.S. dollar.

“Trust, safety, and 1:1 redeemability of each USDC successful circulation is of paramount value to Circle, adjacent successful the look of slope contagion affecting crypto markets,” Allaire said successful the company’s statement.

The station Circle says USDC operations unaffected by SVB, Signature closures appeared archetypal connected CryptoSlate.