Joe

Only wearing black till they make something darker...

[Joe @Redo_Silence]

as announced we will support our community hand to hand. we planned to Airdrop 10% of USDC to cover the Price difference,

to get the airdrop you should have been holder of USDC Before 03/10/2023 23:00 ET Time.

https://t.co/RYzWtDmITT

[Jeremy Allaire - jerallaire.arc @jerallaire]

What do we expect with SVB and the FDIC?

We have reason to believe that under applicable FDIC policy, transfers initiated prior to a bank entering receivership would have otherwise been processed normally. In other words, the FDIC should allow transactions to settle in the ordinary course through the end of a bank’s standard daily processing cycle until the FDIC takes control of the failed institution. We understand that the FDIC is currently determining the status of transactions initiated prior to the applicable receivership cutoff times, and it is possible that the transfers initiated on Thursday will be processed on Monday.

Moreover, SVB has a strong franchise that is at the center of American entrepreneurship and technology industry growth. We are hopeful that the FDIC as receiver will seek a rapid purchase and assumption of a franchise as strong as SVB's to ensure all depositors are made whole.

However, it is also possible that SVB may not return 100% and that any return might take some time, as the FDIC issues IOUs (i.e., receivership certificates) and advanced dividends to deposit holders.

In such a case, Circle, as required by law under stored-value money transmission regulation, will stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary.

[Jeremy Allaire - jerallaire.arc @jerallaire]

The remaining 23% ($9.7bn) is in cash. Last week, we took action to reduce bank risk and deposited $5.4bn with BNY Mellon, one of the largest and most stable financial institutions in the world, known for the strength of their balance sheet and as a custodian.

$3.3bn of USDC’s cash reserves remain with SVB. As of Thursday, we had initiated transfers of these funds to other banking partners. Though these transfers had not yet been settled as of close of business Friday, we remain confident in the FDIC’s management of the SVB situation and stand ready to receive these funds.

$1bn of the USDC reserves is held with Customers Bank as the industry looks to expand their transaction settlement options, and Circle maintains transaction and settlement accounts for USDC with Signature Bank. Both are important banks to the digital asset industry.

USDC has zero exposure to Silvergate; we had transferred out what were limited reserves to support transaction settlement with USDC prior to bank closure.

[Jeremy Allaire - jerallaire.arc @jerallaire]

What is the impact on the USDC reserve?

USDC is 100% collateralized with a combination of cash and US Treasuries.

Specifically, USDC is currently collateralized 77% ($32.4B) with US Treasury Bills (with a three month or less maturation period), and 23% ($9.7B) with cash held at a variety of institutions, of which SVB is only one. US Treasury Bills are the most liquid assets in the world and are direct obligations of the U.S. government. These reserves are held in custody by BNY Mellon, and active liquidity and asset management is managed by BlackRock. Anyone can view the entire liquidity ladder down to the serial number on T-Bills via the USDXX ticker - https://t.co/LXTIBwM9Hf

[Jeremy Allaire - jerallaire.arc @jerallaire]

What just happened?

Silicon Valley Bank, a venerable and trusted partner to the US innovation economy, has just suffered a classic bank run, much like those we saw during the financial crisis in 2008.
Few traditional banks have sufficient liquidity to withstand such a run.

SVB suffered significant losses which led to a situation where they were forced to sell long-duration assets to meet redemption demand. The settlement period on these assets caused a short-term liquidity crunch, leading to the FDIC stepping in to administer the bank yesterday. SVB’s fate is being decided this weekend by the FDIC and it's our hope that they will find a solution that protects customers’ assets 100%.

[Jeremy Allaire - jerallaire.arc @jerallaire]

Tl;Dr: While USDC can be used 24/7/365 on chain, issuance and redemption is constrained by the working hours of the U.S. banking system.

USDC liquidity operations will resume as normal when banks open on Monday morning in the United States. As a practical matter, our teams are well prepared to handle significant volume, built on the strong liquidity and reserve assets discussed below.

As a regulated payment token, USDC will remain redeemable 1 for 1 with the U.S. Dollar.

[Jeremy Allaire - jerallaire.arc @jerallaire]

Sharing an Update on USDC and Silicon Valley Bank. https://t.co/Ug3qpot8sJ

[Dante Disparte @ddisparte]

@circle is currently protecting #USDC from a black swan failure in the U.S. banking system. @SVB_Financial is a critical bank in the U.S. economy and its failure - without a Federal rescue plan - will have broader implications for business, banking and entrepreneurs.

[Circle @circle]

1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB.

[Circle @circle]

2/ Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. economy and will follow guidance provided by state and Federal regulators.

[Circle @circle]

Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.
https://t.co/NU82jnajjY

[Circle @circle]

ICYMI: @jerallaire & Jean-Noël Barrot, French Minister for Digital Transition & Telecomms, discuss the effort to create a single digital market across the EU & the importance of ensuring blockchain technology serves the cause of financial inclusion. https://t.co/xJiQR3h4Dt

[Circle @circle]

The economy is becoming more digital & blockchain tech continues to shift the conversation on regulatory compliance & policy making. See how we’re thinking about this essential layer of the modern global economy in the State of the USDC Economy report: https://t.co/Jn3kcnaoPJ

[Sam | Circle and Arc Community @samconnerone]

Bloomberg @business @s_m_i interviewed @jerallaire , Chief Executive Officer of @circle to discuss stablecoins and his views on crypto regulation. Circle CEO Jeremy Allaire on US Crypto Regulation

Listen 🎧 👇🏾 $USDC

https://t.co/I8ALUOI6JS

[Bloomberg Crypto @crypto]

Who should have oversight of stablecoins? Circle CEO Jeremy Allaire talks regulation and the problems with money on the Bloomberg @crypto podcast https://t.co/dLOeA3LFnj

[Circle @circle]

During #WEF23 earlier this year, @TeanaTaylor sat down with Elizabeth Rossiello (@e_rossiello) of @aza_africa to highlight how AZA's institutional clients use $USDC & the benefits of doing business with a digital dollar that’s always on.

Read on: https://t.co/crAC751UYP

[Tribe @tribex_co]

As part of our collaboration with @circle and powered by @AngelHack, we're excited to unveil the first-ever #CircleHackerHouse!

Held in Singapore, this 2-day physical dev meetup is not to be missed.

📆Save the date! RSVP here ➡️ https://t.co/mTz4x4OCxb

[Circle @circle]

As part of our #IWD celebrations @CircleCarpenter and Li Fan, two of our executive women, explore the potential of digital innovation to help drive gender equality, and why we need more women working in #Web3 to harness it. #EmbraceEquity #TeamCircle https://t.co/HJg8QLbzb8

[Circle @circle]

New Episode: Ep 79 of #TheMoneyMovement, a #WEF23 conversation is premiering now on Youtube! 📽️

Tune in to hear @jerallaire & Jean-Noël Barrot dive into France’s efforts to advance innovation & protect consumers in the digital assets ecosystem.
https://t.co/XuCA0Wv8Mo

[Circle @circle]

PREMIERE TONIGHT: Ep 79 of #TheMoneyMovement features Jean-Noël Barrot, the French Minister for Digital Transition & Telecommunications, to discuss:

👉 The rise of French unicorns
👉 A single digital asset market
👉 Accelerating innovation across Europe

https://t.co/iFvcoczOLq

[Wormhole @wormhole]

1/

📣 Native USDC is Going xChain: Wormhole integrates Circle’s CCTP

We're incredibly excited to announce that Wormhole has partnered with Circle to provide a seamless cross-chain development experience.

Read everything about it in this 🧵