Next, Circle talked about the impact of the SVB collapse on the USDC reserves, pointing out that USDC is collateralized 77% ($32.4 billion) with super-safe US Treasury Bills and 23% ($9.7 billion) with cash held at BNY Mellon ($5.4 billion), Customers Bank ($1 billion), and SVB ($3.3 billion):<\/p>\n
\u201cSpecifically, 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.\u00a0 US Treasury Bills are the most liquid assets in the world and are direct obligations of the U.S. government\u2026<\/em> 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.<\/em><\/p>\n \u201c$3.3bn of USDC\u2019s 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\u2019s management of the SVB situation and stand ready to receive these funds.\u00a0$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.<\/em>\u201c<\/p>\n Finally, Circle said that it expected the FDIC to make sure Circle receives the $3.3 billion held at SVB and to find a buyer for SVB. It also pointed out that returns to SVB\u2019s deposit holders could take some time (\u201cas the FDIC issues IOUs\u201d), and if there were any \u201cshortfall,\u201d it would use \u201ccorporate resources\u201d to ensure USDC holders do not lose out:<\/p>\n
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