Circle’s CEO, Jeremy Allaire, announced that the stablecoin issuer is now “able to access” its $3.3 billion of funds held with Silicon Valley Bank (SVB), following the bank’s collapse.
This news comes after Circle lost market share to its competitor, USDT, due to its earlier disclosure that $3.3 billion worth of USDC reserves were held with SVB. Allaire believes that most, if not all, of the funds held with SVB were able to clear.
This revelation caused USDC to briefly de-peg, resulting in a drop in the stablecoin’s market cap by almost 10% since March 11. In contrast, USDT’s market cap increased slightly during the same period. Despite the temporarily locked funds having a significant effect on USDC, the token’s January reserve report, released on March 2, stated that it was over 100% collateralized and consisted mainly of short-dated United States Treasury Bills, which are considered one of the safest investments globally.