Circle says USDC operations unaffected by SVB, Signature closures

The closure of Silicon Valley Bank and Signature Bank won’t affect Circle’s USDC operations.

The $3.3 billion USDC reserve deposit held at Silicon Valley Bank will be fully available when U.S. banks open on Monday morning, according to the company’s announcement. The company said it had no USDC cash reserves at Signature Bank.

However, Circle used Signature Bank’s real-time settlement network SigNet to process minting and redemption. The company’s CEO Jeremy Allaire said that Circle would rely on settlements through BNY Mellon starting Monday. In a separate announcement, Allaire also said that Circle established a new partnership for automated settlement with Cross River Bank.

USDC regained its peg after trading at around $0.917 last week. The stablecoin lost its peg after Circle announced that it held 8% of USDC’s total reserve with Silicon Valley Bank, sparking an unprecedented rate of redemptions.

The company reiterated that USDC was a regulated payment token and as a result remains 1:1 redeemable with the U.S. dollar.

“Trust, safety, and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle, even in the face of bank contagion affecting crypto markets,” Allaire said in the company’s statement.

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