- Circle assures that USDC holders will be able to redeem $1 for every USDC they have.
- Circle will use corporate resources including external capital to make up for $3.3 billion with Silicon Valley Bank.
- Majority of Circle’s cash reserve is with BNY Mellon, while $1 billion is with Customers Bank.
Circle USD (USDC) users will be able to redeem $1 for every USDC they have, according to an announcement by its issuing company a couple of hours ago.
Read CRYPTONEWSLAND on
google news
The recent bank run of Silicon Valley Bank (SVB) caused many companies that have exposure to it to become subject to massive worry and exodus. Unfortunately, Circle is one of them. However, the company assures that once regular banking operations resume on Monday, USDC holders can exchange their stablecoin for US dollars at a 1:1 ratio.
Circle also revealed its USDC reserves. Specifically, $32.4 billion is in US Treasury bills while $9.7 billion is in cash held in other banking partners. Some of these include BNY Mellon — one of the largest banks in the world — holding $5.4 billion; Customers Bank holding $1 billion; and the remaining $3.3 billion with SVB.
At the moment, SVB’s fate is being determined by the Federal Deposit Insurance Corporation (FDIC). Circle “hopes” that the FDIC will come up with a solution to help customers get back 100% of their money.
Uinvest founder Gurgavin Chandhoke also shared that the FDIC is planning to return some uninsured SVB deposits this money. However, it is not clear how much percentage will be given back or if it will be 100%.
As seen in the tweet above, SVB CEO Gregory Becker posted a message to all employees, expressing his sympathy for their plight. However, he has yet to reveal any conclusive information about the state of the bank and how things will fare soon.
Read Also :
disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
