The crisis at startup lender Silicon Valley Bank, where stablecoin issuer Circle held a part of its USDC cash reserves, is threatening to wipe out the second-largest stablecoin by market capitalization.
Bitcoin BTC , ethereum and other major cryptocurrencies are braced for extreme volatility after Circle’s $43 billion USDC USDC stablecoin lost its U.S. dollar peg—topping off a wild week for crypto.
The bitcoin price has sunk by 10% this week due to the failure of the crypto-friendly bank Silvergate, wiping away $100 billion from the combined crypto market as the price of top ten cryptocurrencies ethereum, BNB BNB , XRP XRP , cardano, dogecoin, polygon and solana go into freefall.
Now, the crisis at startup lender Silicon Valley Bank (SVB), where stablecoin issuer Circle held a part of its USDC cash reserves, is threatening to wipe out the second-largest stablecoin by market capitalization.
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“Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash,” Circle posted to Twitter, exacerbating a near-10% drop from its U.
