• According to a Bloomberg report, Silicon Valley Bank (SVB), SVB Financial Group, biotechnology research company Altos Labs and China-based firm Kanzhun were among the top 10 depositors at the collapsed crypto-friendly SVB in March.
• Stablecoin issuer Circle and venture capital firm Sequoia Capital reportedly held roughly $3.3 billion and $1 billion in deposits respectively.
• Following the failure of SVB and Circle confirming its exposure to the bank, the USDC briefly depegged from the U.S. dollar; Circle announced plans to launch a native version of USDC on Arbitrum network.
Major Depositors At Collapsed Crypto-Friendly Bank
According to a Bloomberg report, other major depositors included Silicon Valley Bank (SVB), SVB Financial Group, biotechnology research company Altos Labs and China-based firm Kanzhun. Stablecoin issuer Circle and venture capital firm Sequoia Capital were reportedly among the top 10 depositors at the collapsed crypto-friendly SVB in March, holding roughly $3.3 billion and $1 billion in deposits respectively.
FDIC To Make Depositors Whole
The Federal Reserve announced following the SVB collapse that it would work with the FDIC to make both insured and uninsured depositors whole — in most situations, the FDIC only insures up to $250,000 per depositor.
USDC Depegging From U.S Dollar
Following the failure of SVB and Circle confirming its exposure to the bank, USDC briefly depegged from U.S dollar; Circle announced plans to launch a native version of USDC on Arbitrum network.
Regulators Handle Deposit Insurance
The failure of SVB highlighted how regulators in United States handle deposit insurance; though Fed, FDIC & Treasury Department said covering SVB & Signature deposits over $250K was part of “systemic risk exception” they explored raising insurance limit too.
Conclusion
The situation with Silicon Valley Bank has put a spotlight on deposit insurance regulations within United States; regulators are looking into potentially raising insurance limit as well as making sure all depositors are made whole regardless of their amount deposited with failed financial institutions like Silicon Valley Bank .