USDC Depegs From $1

U.S.-based casual stablecoin USDC issuer Circle held a part of its USDC stablecoin’s cash reserves at Silicon Valley Bank as of Jan. 17, according to the firm’s latest attestation.

USDC is the second-largest stablecoin on the market, with a $43 billion circulating supply that is fully backed by government bonds and cash-like assets.

U.S. cryptocurrency firm Circle said it has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank.

According to Circle’s January reserve report, the firm held some $9.88 billion of cash deposited at regulated banks to back USDC’s value. According to Circle’s website on March 10, cash deposits in the reserves amounted to $11.1 billion.

USDC’s banking partners included Silicon Valley Bank (SVB), the California-based bank that was taken over by regulators and shut down on Friday.

“Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash,” Circle posted to Twitter, exacerbating a near-10% drop from its U.S. dollar peg. “While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle and USDC continue to operate normally.”