USDC stablecoin investors panicked when Circle announced its exposure to the shuttered banks, and Circle’s latest report on USDC Reserves and attestation from Deloitte, the global audit company, confirms the connection.
However, in a new development, Circle reports almost clearing all minting and redemption requests for USDC. The current situation shows the issuer has cleared all the backlog in transacting with the stablecoin.
Exposure Of Circle To Silicon Valley Bank
Before its closure, SVB stated its plan to boost its balance sheet by raising about $ 2.25 billion. This was after its loss of $ 1.8 billion through asset sales. The bank opted for asset sales when its efforts to raise capital failed. But the entire situation became complicated as the sales resulted in a massive outflow of deposits.
