US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account Stablecoin issuer Paxos and crypto exchange Gemini also tweeted they do not have relationships with the bank. The chief executive of cryptocurrency exchange Binance said in a tweet on Friday it had no exposure to Silicon Valley Bank, as did Tether Chief Executive Paolo Ardoino. (SI), which this week disclosed plans to wind down operations and voluntarily liquidate.īoston-based Circle said last week it had moved a “small percentage” of USDC reserve deposits held at Silvergate to its other banking partners. Traders have been on guard this week for signs of contagion in the financial sector and beyond from troubles for Silicon Valley Bank and crypto-focused Silvergate How does a bank collapse in 48 hours? A timeline of the SVB fall Prior to being shut down by regulators, shares of SVB were halted Friday morning after falling more than 60% in premarket trading following a 60% declined on Thursday when the bank sold off a portfolio of US Treasuries and $1.75 billion in shares to cover declining customer deposits. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S.

People line up outside of the shuttered Silicon Valley Bank (SVB) headquarters on Main Santa Clara, California. According to CoinGecko data, its previous all-time low was around $0.97 in 2018, though in 2022 it fell just below $0.99 when cryptocurrency markets were roiled by the collapse of crypto hedge fund Three Arrows Capital. USDC’s price usually holds close to $1, making Saturday’s drop unprecedented. The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. Used in cryptocurrency trading, they have surged in value in recent years. Stablecoins are cryptocurrencies designed to maintain a constant exchange rate with “fiat” currencies – those backed by a central government rather than a physical commodity such as gold – for example through a 1:1 US dollar peg. These companies held money at Silicon Valley Bank and aren't sure if they'll recover the fundsĬircle said in a tweet Friday it and USDC “continue to operate normally” while the firm waits for clarity on what will happen to Silicon Valley Bank depositors.Ĭircle did not immediately respond to a request for comment about the dollar peg, sent outside of US working hours. REUTERS/Nathan Frandino Nathan Frandino/Reuters

A sign for Silicon Valley Bank (SVB) headquarters is seen in Santa Clara, California, U.S.

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