Who is exposed to the SVB and the signature bank? A more precise view
Who is exposed to the SVB and the signature bank? A more precise view
The Silicon Valley Bank and the crypto-friendly Signature Bank announced operational difficulties and were closed by the supervisory authorities.
While some expect the collapse that will trigger a domino effect, numerous companies associated with cryptocurrencies have already suffered losses due to their commitment to the institutions mentioned above. Let's take a closer look.
SVBS influence
as cryptopotato registered last week-the company resident in Boston, which was based in Boston Stablecoin USDC outputs - a whopping $ 3.3 billion of his barreserves at Silicon Valley Bank. The news of the bank's problems caused a serious disturbance of the USDC Prize, which lost its dollar parity and crashed to up to $ 0.87 on March 11th.
Despite the problems, Circle specified It continues the normal process of its business:
"In such a case, Circle, as legally and according to the ordinance on the transfer of money with stored value, is prescribed behind, behind USDC and cover any incorrect amounts with corporate resources, if necessary with the inclusion of external capital."
The USDC stabilized in the following days and is currently $ 0.98, which is still a discount on its bond. Another known name component is the burned SVB customer Ripple. CEO Brad Garlinghouse Recently unveiled that the company held "part of its cash" with the former bank giants, but "no interruption of the daily business". He also insured Ripple that remains in a "strong financial position". Blockfi-A crypto loan who had big problems in the course of 2022 and spreserver-spaces = "True"> put off Preserver-spaces = "True" had $ 227 million in the SVB. The Avalanche Foundation-a decentralized Smart-Contract platform-in turn reported a little more than $ 1.6 million engagement with the bank. of the cryptofocussed institutional asset manager- Pantera capital -and the organization Bored Ape Yacht Club (BayC) - Yuga Labs - were also affected. The former did not provide any information about his exact exposure, the latter, on the other hand, described his liability as "Super Limited". The Chinese journalist Colin wu indicated that the risk capital companies have invested in crypto and web3-Andessen Horowitz (A16Z) and paradigm-also part of the SVB could be. The leading cryptocurrency exchange in the USA-Coinbase- announced on Twitter that it held $ 240 million in the signature bank. As stated by the Federal Deposit Insurance Corporation (FDIC), the venue expects to fully retain these funds. The blockchain infrastructure platform-Paxos-is next on the list, Insentive $ 250 million engagement at the collapsed bank. "The search for private deposit insurance is part of our conservative approach to manage customer assets that exceed the FDIC insurance limits," she added. , however, assured that all customer assets are saved from a distance, while the stable coin reserves are "fully secured and redeemed" for customers at any time. The Bankrotte crypto maker- Celsius network -also kept part of his funds in the Signature Bank. The unsecured creditor's committee said all inserters were "made healthy". Other prominent actors in the industry, including the cryptocurrency exchange- krypto.com -and the stable coin emittent- Holding -quickly delimited from the crisis and said that they have no engagement in the failed bank. . What about the Signature Bank?