Circle can now access $3.3B USDC reserves at Silicon Valley Bank's

By: Michael Wilson

Circle can now access $3.3B USDC reserves at Silicon Valley Bank's

March 15, 2023 6:18 AM

Circle's earlier announcement that $3.3 billion in USDC reserves were stored at Silicon Valley Bank cost them market share to competitor USDT.


Circle CEO and co-founder Jeremy Allaire claims that the stablecoin issuer has been "able to access" its $3.3 billion in funds stored at the failed bank Silicon Valley Bank since March 13.


On March 14, Allaire told Bloomberg Markets that he felt "if not everything, very close to everything was able to clear" from the collapsed firm.


USD Coin (USDC), Circle's stablecoin, briefly de-pegged following revelations that $3.3 billion of its cash reserves were locked up in SVB.


Although the stablecoin's dollar peg has since rebounded, TradingView data shows that widespread redemptions of USDC have reduced the stablecoin's market cap by roughly 10% since March 11.

 

USDC market capitalization from March 8 to March 14. Source: TradingView


Meanwhile, USDC rival Tether (USDT) has seen its market cap rise by more than 1% since March 11 to $73.03 billion over the same time period.


The temporarily frozen money had a substantial impact on USDC, despite the fact that the $3.3 billion represented less than 8% of the token's reserves, according to its January reserve report, which was released on March 2.

 


According to the report, USDC was more than 100% collateralized, with more than 80% of the reserve consisting of short-dated United States Treasury Bills – highly liquid assets that are direct obligations of the United States government and are regarded as one of the safest investments in the world.