After the Silicon Valley Bank (SVB) was shut down by the California Department of Financial Protection and Innovation, many huge organizations started revealing how much they had in the bank. The Silicon Valley Bank collapse was an event that happened recently last week, leading to a huge crash within the financial sector. The sad event has affected many industries, including top organizations. Subsequently, they began to reveal how much they had in the bank. Even crypto firms were also affected by the Silicon Valley Bank crash. USDC depegged when the news of the collapse broke out, and this caused a huge sell-out among crypto traders.
Big names within different industries, such as Circle, BlockFi, Payoneer, Roku, and Roblox, have reported their exposure to the collapse of the SVB Bank. The money they had with the bank is worth billions of dollars. It is not yet clear if all this money will be recovered at the moment. Individually, the money which each company has varies. But it seems the biggest here was the crypto firm Circle (issuer of USDC), which had $3.3 billion with the SVB before its collapse. Other companies with money from the collapsed bank were in millions of dollars.
According to CEO of finance media company Grit Capital Genevieve Roch-Deter, she revealed the names of the companies that have been heavily affected by the Silicon Valley Bank collapse. On Twitter, she wrote, "Companies that have disclosed exposure with Silicon Valley Bank:
- Circle: $3.3 billion
- Roku: $487 million
- BlockFi: $227 million
- Roblox: $150 million
- Ginkgo Bio: $74 million
- IRhythm: $55 million
- RocketLab: $38 million
- SangamoTherapeutics: $34 million
- LendingClub: $21 million
- Payoneer: $20 million."
Crypto Firms Affected the Most
One can see from the list that crypto firms received the most blow from the SVB collapse. Circle, the issuer of the USDC stablecoin, received the biggest blow as it saw its $3.3 billion getting drained . The money that Circle has within the Silicon Valley Bank is almost three times of other companies on the list. Besides Circle, BlockFi is another well-known crypto-affiliated company on the list.
Circle has released a statement telling. Their users remain calm about the situation, and they are working to bring everything under control. They said that they would get their cash reserve back once everything was put under control. "The $3.3B USDC reserve deposit held at Silicon Valley Bank, about 8% of the USDC total reserve, will be fully available when U.S. banks open tomorrow morning. 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 said.
The CEO of Circle, Jeremy Allaire, already said he was happy to see the US government putting things under control." We are heartened to see the U.S. government and financial regulators take crucial steps to mitigate risks extending from the banking system. We’ve long advocated for full-reserve digital currency banking that insulates our base layer of internet money and payment systems from fractional reserve banking risk," he said.