Circle’s Funds Could Be In Jeopardy As California Regulators Close Silicon Valley Bank By Benzinga
Benzinga – Circle (CRYPTO: USDC) deposited an unknown sum of cash in the now-defunct Silicon Valley Bank (NASDAQ: SIVB), which was one of the U.S.-regulated financial institutions responsible for holding the platform’s reserves, as per a USDC Reserve Report.
The report stated Circle had listed SVB, along with other banks, as the custodian of its funds.
During the latter half of the week, Silicon Valley Bank’s stock price took a nosedive and the financial institution required an infusion of capital to stay afloat.
As a result, California regulators shut down the bank, causing widespread concern in the banking sector.
Also Read: South Dakota Governor Vetoes Bill To Exclude Bitcoin, Ethereum, Other Cryptos From Money Definition
The closure of Silicon Valley Bank has affected one of the strongest players in the cryptocurrency industry, as Circle had undisclosed amounts of cash deposited in the bank.
The USDC Reserve Report also listed other financial institutions like Silvergate Bank (NYSE: SI) and Bank of New York Mellon Corp (NYSE: BK) as custodians of Circle’s funds.
However, the report did not specify the exact amount of capital Circle had deposited in Silicon Valley Bank.
As of now, Circle has not commented on the bank’s closure or the amount of capital they had kept in the bank.
Notably, the report was published on March 2, just a few days before the bank’s closure.
Meanwhile, Riot Blockchain (NASDAQ: RIOT) CEO Jason Les told Benzinga that the Bitcoin (CRYPTO: BTC) company has no exposure to SVB Financial.
Read Next: Say Goodbye To Traditional Banking With Binance’s Prepaid Crypto Card In Colombia
Photo: T. Schneider via Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read the original article on Benzinga
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