Circle, the Silicon Valley bank, is transferring $3.3 billion to Mellon Bank, CEO: Rescuing cryptocurrency from the hands of banks

According to excerpts from the Bankless Podcast by media outlet The Block, Jeremy Allaire, CEO of USDC issuer Circle, stated that they are in the process of transferring the $3.3 billion cash reserves previously stuck at Silicon Valley Bank to Mellon Bank of New York. Allaire mentioned that while the $3.3 billion can be seen in the process of being transferred on Fedwire (Federal Reserve's real-time gross settlement system), it has not been settled yet.

The Block, according to excerpts from the Bankless Podcast, reported that Jeremy Allaire, CEO of Circle, the issuer of USDC, mentioned that they are in the process of transferring the previously stuck $3.3 billion cash reserve from Silicon Valley Bank to Mellon Bank in New York. Allaire stated that although the $3.3 billion can be seen in the Fedwire real-time settlement system, it has not been settled yet.

In the interview, Jeremy Allaire pointed out that while people are discussing how to save banks from the disruption caused by cryptocurrencies, the reality is that we are actually saving cryptocurrencies from the banks.

As per Circle's announcement on 3/12, the USDC reserve consists of 77% collateralized by short-term U.S. Treasury securities totaling $32.4 billion, and the remaining 23% consists of $9.7 billion in cash held by various institutions, with Mellon Bank holding $5.4 billion and Customers Bank holding $1 billion. The $3.3 billion from Silicon Valley Bank is now also being transferred to Mellon Bank. Following the closure of their previous partner banks Silvergate and Signature, Circle has announced a new partnership with Cross River Bank.

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