{"id":379741,"date":"2023-03-11T16:37:15","date_gmt":"2023-03-11T16:37:15","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=379741"},"modified":"2023-03-11T16:37:16","modified_gmt":"2023-03-11T16:37:16","slug":"circle-faces-criticism-for-the-lack-of-transparency-after-saying-that-3-3b-in-usdc-is-with-svb","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/circle-faces-criticism-for-the-lack-of-transparency-after-saying-that-3-3b-in-usdc-is-with-svb","title":{"rendered":"Circle faces criticism for the lack of transparency after saying that $3.3b in USDC is with SVB"},"content":{"rendered":"

Investors became highly concerned recently<\/a> regarding the future of the Silicon Valley Bank (SVB) after it decided to announce a significant sale of assets and stocks aimed at raising capital. With the move coming only a day after another crypto-friendly bank, Silvergate shut down, many became convinced that all was not well with SVB, leading the investment community to panic.<\/p>\n

Only hours later, the bank collapsed and was placed in FDIC receivership. Following this, the crypto payments company Circle, which launched the USDC stablecoin — the second-largest stablecoin in the crypto industry — revealed that $3.3 billion in funds used to back USDC remain with SVB.<\/p>\n

Initially, the company tweeted that Silicon Valley Bank was one of the six banking partners managing a total of 25% of the total USDC reserves.<\/p>\n

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Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.https:\/\/t.co\/NU82jnajjY<\/a><\/p>\n

— Circle (@circle) March 10, 2023<\/a><\/p><\/blockquote>\n