Circle confirms $3.3 billion stuck at Silicon Valley bank, awaits FDIC assistance

The issuer of the stablecoin USDC, Circle, announced at noon on the 11th that as of today, the remittance initiated on Thursday has not been processed yet. Out of the approximately $40 billion reserve in USDC, $3.3 billion is still held by Silicon Valley Bank (SVB).

Circle's Cash Reserves are Not Diversified

According to the cash reserve calculation announced by USDC on 3/9, the total amount is $11 billion, with reserves spread across six different banks. Following the disclosure of the actual amount, Circle has $3.3 billion stuck in Silicon Valley Bank, indicating that thirty percent of the cash is held there. While the FDIC is expected to provide depositors with a significant level of insurance claims and liquidation compensation, the diversification of funds for USDC is not as high as imagined.

1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB.

— Circle (@circle) March 11, 2023