March 11 (Reuters) - 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.
Traders have been on guard this week for signs of contagion
in the financial sector and beyond from troubles for SVB and
crypto-focused Silvergate , which this week disclosed
plans to wind down operations and voluntarily liquidate.
Boston-based Circle said last week it had moved a "small
percentage" of USDC reserve deposits held at Silvergate to its
other banking partners.
Circle said in another tweet on Friday that it and USDC
continue to operate normally while it waits to see how SVB's
receivership will affect its depositors, while several crypto
companies took to Twitter to deny any exposure to the collapsed
SVB.
The chief executive of cryptocurrency exchange Binance said
in a tweet on Friday it had no exposure, as did Tether CEO Paolo
Ardoino.
Stablecoin issuer Paxos and crypto exchange Gemini tweeted
they do not have any relationships with SVB.
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by William
Mallard)
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