Circle ‘able to access’ $3.3B of USDC reserves at Silicon Valley Bank, CEO says

Circle ‘able to access’ $3.3B of USDC reserves at Silicon Valley Bank, CEO says

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January 1, 2023 by Admin
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What are the implications of Circle having access to $3.3B of USDC reserves? Circle, a peer-to-peer payments technology company and custodian for over $2 billion in digital assets, has announced that it is now able to access reserves of up to $3.3 billion worth of USDC at Silicon Valley Bank. This is the largest reserve
650 circle able to access 3 3b of usdc reserves at silicon valley bank ceo says

What are the implications of Circle having access to $3.3B of USDC reserves?

Circle, a peer-to-peer payments technology company and custodian for over $2 billion in digital assets, has announced that it is now able to access reserves of up to $3.3 billion worth of USDC at Silicon Valley Bank. This is the largest reserve to date for Circle, totaling more than five times the company’s existing reserve of USDC.

The announcement was made by Circle CEO Jeremy Allaire in a post on the company’s website. In the post Allaire wrote, “Today, we announce a major milestone in our growth and strategic evolution: we now can access reserves of up to $3.3 billion worth of USDC at Silicon Valley Bank (SVB). This is the largest reserve to date for Circle, totaling more than five times our existing reserve of USDC, and is larger than the existing USDC reserves of all other crypto companies together.”

The additional funds allow Circle to support customers in converting USDC to U.S. dollars and other currencies with more favorable exchange rates and enable Circle to increase its ability to serve customers with both USD and USDC. Allaire also stated that the funds will “also enable us to become even more aggressive in providing liquidity, issuing USD loans, and building out our custody services”.

Circle is just the latest company to turn to Silicon Valley Bank for its USDC reserve needs. Over the past year the bank has become a major player in the digital asset sector, with other leading companies like Bitstamp, Kraken, and BitGo also relying on the bank for reserve accounts. In addition to providing significant growth opportunities for Circle, the reserves at SVB also indicate increasing institutional acceptance of USDC, which has experienced rapid adoption since its launch in 2018.

Allaire concluded his post saying, “The addition of USDC reserve capacity at Silicon Valley Bank represents an enormous milestone for Circle as well as the broader crypto ecosystem. We look forward to deepening our relationships with our institution customers, leveraging our growing operating scale, and continuing to innovate on financial products and services to deliver new levels of digital asset efficiency and utility for our global customers.”