Crypto firm Circle unveils $3.3 billion exposure to Silicon Valley Bank

(Reuters) – US cryptocurrency firm Circle has $3.3 billion of its $40 billion coin reserves at collapsed lender Silicon Valley Bank, the firm said in a tweet on Friday.

The announcement of stablecoinThe company comes after startup-focused SVB collapsed on Friday in the biggest bank meltdown since the 2008 financial crisis, scrambling global markets and stranding billions of dollars owned by companies and investors.

Traders have been wary of signs of contagion in the financial sector this week and beyond on issues for SVB and crypto-focused Silvergate, which this week announced plans to cease operations and voluntarily liquidate.

Boston-based Circle said last week it had moved a “small percentage” of USDC reserve deposits held at Silvergate to its other banking partners.

Circle said in another tweet on Friday that it and USDC are continuing to operate normally while waiting to see how SVB’s receivership will affect its depositors, while several crypto firms took to Twitter to deny any involvement with the collapsed SVB .

The chief executive of cryptocurrency exchange Binance said in a tweet on Friday that it has no exposure, as well tether-CEO Paolo Ardoino.

Stablecoin issuer Paxos and crypto exchange Gemini tweeted that they have no ties to SVB.

(Reporting by Rishabh Jaiswal in Bengaluru; Editing by William Mallard)