All the cash backing USDC was moved by Circle to BNY Mellon.
Circle recently reported that cryptocurrencies held in troubled banks were tried to be rescued. However, the company carried the cryptocurrencies it held.
Circle Managed to Move Funds from Troubled Banks
The crisis that has gripped smaller and regional US banks has upset plans for Circle, the second-largest stablecoin issuer, to confine the money to community lenders, at least for now.
Circle Internet Financial Ltd. plans to keep all the money used to support the $38 billion stablecoin USD Coin at major global banks, after temporarily cutting off access to $3.3 billion in deposits following Silicon Valley Bank’s closure last week.
This, in turn, ignited a run in USDC that caused the token to drop from its intended dollar peg for about three days.
Circle CEO Jeremy Allaire said in an interview with Bloomberg News on Tuesday:
“We will now have to rely more on globally systemically important banks with a structural footing and a slightly different profile. We see this as a general market phenomenon at the moment.”
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