Updated: Jun 8
- Circle's reserves
- SVB failure
- 3.3 Billion Cash Deposits stuck on SVB
- Circle's Twitter announcement
- USDC de-pegging
- On-Chain data
Silicon Valley Bank is one of Circle's reserve banking partners for its stablecoin USDC. Based on Circle's official announcement on twitter, it was clear that 3.3 Billion USD in Cash Deposits remained at SVB as it was facing a liquidity crunch.
Circle's official announcement:
The announcement spooked crypto natives and investors as they began to redeem their stablecoin. The sudden influx of sell pressure caused the stablecoin's price to depeg. It began crashing down from 1.0 $ to 0.90 $. Nearly 1 Billion worth of USDC was redeemed as investors and crypto natives were very sceptical of SVB's failure and its impact on Circle's reserve.
USDC DEPEGGING - ON 11th March 2023 post twitter announcement
The price was crashing to <0.9 $ .