Circle reported that it moved its USDC reserves from Silvergate after the Silvergate news that marked the last days.
Crypto bank Silvergate has announced that it is shutting down its Silvergate Exchange Network service amid the turmoil over its financial situation. The company, which broke its ties with Coinbase, also terminated various services it provides to the digital asset market.
Acting on this, Circle moved its USDC reserves in Silvergate to other banking partners. The stablecoin issuer also underlined that the reserves moved from Silvergate constitute a small percentage of the total reserves.
Silvergate Confusion: Circle Saves USDC Reserves
Stablecoin issuer Circle has announced that it is moving its USDC reserves held at Silvergate to other banking partners, as a result of the ongoing uncertainty at Silvergate Bank.
Silvergate news, which stirred the crypto industry, had also mobilized various crypto organizations. Many crypto exchanges have terminated their work with Silvergate, and many institutional investors have begun to stone their funds to other banks. Such moves started to make people think about the possibility of the crypto bank going bankrupt.
After all these processes, Circle made a statement regarding its Silvergate and USDC reserves. Due to the turmoil at Silvergate, Circle took action to recover the USDC reserves in the bank. The issuer company, which carries its USDC reserves to other banks, made the following statements;
The process of terminating our relationship with Silvergate began last year as signs of trouble and exposure to broader crypto-asset risk became increasingly evident.
In addition, Circle announced that although Silvergate will continue its operations, it continues to carry its remaining services with the crypto bank. The stablecoin issuer is working hard to sever all ties with Silvergate.
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