OH NO – Crypto Exchange CIRCLE Admits It had a $3.3 Billion Exposure at Silicon Valley Bank

 

Another crypto exchange is in the news and it’s not good.

According to CNBC:

U.S. cryptocurrency firm Circle has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank, the company said in a tweet on Friday.

The stablecoin company’s announcement comes after startup-focused SVB collapsed on Friday in the largest bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors.

On Twitter, experts were saying CIRCLE was going to fail months ago.

Today CIRCLE announced it will open for business on Monday as normal and is expecting high volume.

On Saturday, March 11, 2023, Circle Financial updated the public about its stablecoin, USDC, and noted that the stablecoin’s liquidity operations will resume normally on Monday morning in the United States. Circle said that the company’s teams would be ready on Monday to “handle significant volume” and that the firm will “stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary.”
Circle Financial Confident in USDC Stability Despite SVB Failure
Circle, the issuer of the second-largest stablecoin by market capitalization, usd coin (USDC), addressed the public on Saturday, noting that the firm will be ready on Monday to “handle significant volume.” The company discussed the failure of Silicon Valley Bank (SVB) and also emphasized the USDC’s “strong liquidity and reserve assets.” On Monday, the stablecoin issuer noted, “USDC will remain redeemable 1-for-1 with the U.S. dollar.”

This doesn’t sound good.