Circle CEO Jeremy Allaire has reassured investors that 100% of deposits from Silicon Valley Bank (SVB) are secure and will be available when banking resumes, and that all USDC reserves are also safe and secure.
The company will complete the transfer of remaining SVB cash to BNY Mellon. Circle plans to resume liquidity operations for USDC at banking open tomorrow morning, relying on settlements through BNY Mellon after the recent closure of Signature Bank.
Circle is also set to bring on a new transaction banking partner with automated minting and redemption as early as tomorrow. The company says it is committed to building robust and automated USDC settlement and reserve operations with high quality and transparency.
Allaire plans to release a longer statement reflecting on recent events, including the closure of Signature Bank and the need for a truly safe financial system.
In a press release, Circle confirmed that all depositors with Silicon Valley Bank and Signature Bank will be made whole following recent announcements by U.S. Treasury Secretary Janet Yellen and U.S. prudential regulators.
The $3.3B USDC reserve deposit held at Silicon Valley Bank will be fully available when U.S. banks open tomorrow morning, and no USDC cash reserves were held at Signature Bank. As a regulated payment token, USDC remains redeemable 1:1 with the U.S. dollar.
Circle also announced plans to expand banking partnerships with automated USDC minting and redemption for customers via new banking partners set to go live this week. Allaire emphasized the importance of trust, safety, and 1:1 redeemability for all USDC in circulation, particularly in the face of bank contagion affecting crypto markets.
