Blockchain payment Technologies and Circle, the publisher of dollar coins (USDC), confirmed on March 10th that the balance-eliminating bank wire transfer was not finished on Thursday, leaving $3.3 billion of its $40 billion in USDC reserves with SVB.

Anxiety about USDC grew later this week, as Circle announced in a recent financial audit that as of Jan. 31, it had $8.6 billion, or about 20% of its reserves, with several financial companies, including recently closed SilverGate and cancelled SVB.

To provide clarity on this matter, Circle announced on March 10th according to Twitter:

After it was confirmed at the end of the day that bank wire transfers to eliminate balances began on Thursday had not been resolved, $3.3 billion of USDC's approximately $40 billion in reserves remained in SVB.

Circle shows that it is now joining other users and depositors in calling on SVB to maintain sustainability, which the company claims will be critical to the US economy. Circle said on Twitter that it would follow professional guidance from state and federal regulators.

In addition to Circle's statement, the company's chief strategy officer and current policy director around the world called on the Foreign Federal Deposit Insurance Corporation (FDIC) to formulate an SVB emergency rescue plan, saying that "Circle is now protecting USDC from the bankruptcy of foreign bank management system Grey Swan."

"without a federal aid program-it would do more harm to business services, banks and entrepreneurs."

A spokesman for Circle also said in a statement for Cointelegraph that SVB was one of six banking partners used by Circle to manage about 25 per cent of USDC's cash reserves. As we wait for how the takeover of SVB by the FDIC should affect depositors, Circle and USDC are functioning normally again. "

It is worth noting that before the announcement, according to CoinGecko, the USDC rate was less than the hook rate of US $1, which was US $0.98; however, immediately after the announcement, the price continued to fall to US $0.93 after the writing.

According to previous media reports, Silicon Valley Bank, a key financial company that supports venture capital firms, was shut down by California financial regulators, making it the first bank to fail guaranteed by the Federal Deposit Insurance Corporation in 2023.

Although the exact reason for the shutdown is unclear, California regulators have designated FDIC as the receiver to protect insured savings. SVB is one of the top 20 banks in the United States, providing financial information services to several venture capital companies that specialize in data encryption, including Andreessen Horowitz and Sequoia.

Coinbase and Binance abort USDC transformation

About 30 minutes after Circle released its new statement, Coinbase announced that "USDC: exchange of US dollars will be suspended on Sunday in the event of a bank shutdown", adding to the problems related to USDC.

In the dynamic stage of investment, the exchange depends on the bank to carry out dollar transfers within the normal operating period. When the bank operates on Monday, people plan to start from scratch, "the company said.

Such a move highlights the difficulties faced by centralized data encryption companies, which do not have to provide them with round-the-clock banking services.

On the same day, Binance also announced through Twitter, because of the current market situation, especially the problems related to high net capital inflows, the pressure to apply conversion is also increasing, and logging in to the password trading center has already stopped USDC to BU.S. The fully automatic transformation.

The company added: "this is the normal risk management process that we adopt when monitoring the situation."