State regulators closed New York-based Signature Bank on Sunday, just two days after California authorities shuttered Silicon Valley Bank (SVB), in a collapse that roiled global markets and stranded billions of dollars of deposits. "With the closure of Signature bank announced tonight, we will not be able to process minting and redemption through SigNet, we will be relying on settlements through BNY Mellon," said Allaire. In light of Silicon Valley Bank's collapse, Allaire said all deposits from SVB were secure and would be available when banks opened on Monday morning in the United States. "100% of USDC reserves are also safe and secure, and we will complete our transfer for remaining SVB cash to BNY Mellon," Allair added.
USDC lost its dollar peg and slumped to an all-time low on
Saturday before recovering most of its losses after Circle
assured investors it would honor the peg despite exposure to
failed Silicon Valley Bank.
Circle said in a tweet on Friday it had $3.3 billion of its
$40 billion of USDC reserves at Silicon Valley Bank.
(Reporting by Akriti Sharma in Bengaluru; Editing by Sonali
Paul)
