Silicon Valley Bank's $3.3 Billion In USDC Reserves Are Available To Circle

Circle previously revealed that Silicon Valley Bank owned USDC reserves totaling $3.3 billion, which caused it to lose market share to rival USDT.

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Jeremy Allaire, the CEO and co-founder of Circle, claims that since March 13, the stablecoin issuer has "been able to access" the $3.3 billion in money it had with Silicon Valley Bank, the bank that went insolvent.

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On March 14, Allaire toldTrade Algo that he thought "if not everything, pretty close to just about everything was able to settle" from the defunct lender.

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As soon as it was revealed that $3.3 billion of Circle's cash reserves were stranded on SVB, USD Coin (USDC), the stablecoin that the company has released, suddenly lost its peg.

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The dollar peg of the stablecoin has since been restored, however massive USDC redemptions have caused the stablecoin's market cap to fall by about 10% since March 11, according to TradingView.

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Tether (USDT), a USDC peer at the same time period, has seen a minor increase in market cap since March 11, rising by more than 1% to $73.03 billion.

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Although while the $3.3 billion comprised less than 8% of the token's holdings, in accordance with its January reserve report, which was made public on March 2, the temporarily locked cash had a considerable impact on USDC.

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The study claimed that USDC was over 100% collateralized, with short-dated US Treasury Bills accounting for over 80% of the reserve. These highly liquid assets are regarded one of the safest investments in the world because they are direct obligations of the US government.