Circle was a principal beneficiary of SVB government rescue
A recent report by Bloomberg states that Circle, the issuer of the USDC stablecoin, emerged as a primary recipient of support from the government -backed rescue of Silicon Valley Bank (SVB). According to the information acquired from the Federal Deposit Insurance Corporation (FDIC), Circle had more than $3.3 billion in reserves at SVB. The FDIC guaranteed these reserves and were thus safe. EXCLUSIVE: The FDIC backstopped Sequoia Capital and several major tech firms when it stepped in to insure all Silicon Valley Bank deposits, document reveals https://t.co/bI9JWzfIXd — Bloomberg (@business) June 23, 2023 After the SVB declared bankruptcy in March, the regulatory agencies stepped in to protect the bank’s creditors to regain the public’s confidence and maintain economic stability. However, due to this action, discussions over the degree to which the government allows financial institutions to incur excessive risks have been rekindled. You might also like: ...