Amid the ongoing struggle with the Silicon Valley Bank (SVB), Circle partnered with Cross River Bank as a new commercial banking partner.
USDC is a popular second-ranked US dollar-pegged stablecoin in the crypto sector by 24-hour trade volume. Circle is the backend company behind this stablecoin & pledged to maintain the value of each USDC equal to $1.
On 13 March 2023, Circle CEO & co-founder Jeremy Allaire confirmed that Circle will process its settlement with its new commercial banking partner Cross River Bank.
Circle’s USDC operations will open for business on Monday morning, including with new automated settlement via our new partnership with Cross River Bank. https://t.co/ybkSEedzrC
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— Jeremy Allaire (@jerallaire) March 13, 2023
Circle also confirmed that the company is expanding its partnership with the Bank of New York Mellon (BNY Mellon), to assist easy redemption of USDC. BNY Mellon already provides custody services for Circle’s reserves.
Silicon Valley Bank (SVB)
Recently Circle confirmed that now-failed crypto-friendly banking partner “Silicon Valley Bank” was managing 25% USDC reserves but confirmed that USDC & Circle are working smoothly without any termination of the services.
The latest notification issued by Circle confirmed that the company has no exposure with Silvergate Bank, which is also a collapsed bank & company decided to liquidate Silvergate Bank assets to compensate the bank depositors.
USDC depeg
Because of the bankruptcy news of SVB, USDC stablecoin plunged by more than 10% from its pegged value. But now the USDC price is trading more closely to $1.
Thanks to the US Fed agencies’ response on this matter, which confirmed that no one SVB depositors will face any loss and they will help to give refund to the affected parties.
Read also: Vitalik Buterin send 500 ETH to a very less known protocol
Cross River Bank is now the new banking partner for Circle (USDC)
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