Update on Banking Services with Silvergate Bank

Update on Banking Services with Silvergate Bank

Company Updates

As a U.S. regulated money transmission and electronic stored value company, Circle’s top priority is the protection of reserve funds backing USDC. As a result of ongoing uncertainty at Silvergate Bank, today Circle has moved the small percentage of USDC reserve deposits held at Silvergate to our other banking partners.  This process of winding down our relationship with Silvergate began last year, as signs of trouble and broader crypto asset risk exposure became increasingly apparent.

All USDC reserves are held in several well-capitalized U.S. banks, and in the Circle Reserve Fund, which currently comprises approximately 80% of USDC reserves and provides daily reporting. Since 2018, the sum of these reserves have been reviewed and attested to monthly by a third-party auditor, with the January 2023 attestation now available on Circle’s website.  

Certain services that Silvergate Bank previously provided to the broader digital assets market have been suspended by Silvergate.  This includes Silvergate’s Exchange Network (SEN), which a small number of Circle customers had used.  Historically, this service provided a payment transfer network into Silvergate.

Circle’s customer service, operations, risk management and finance teams have already notified remaining Silvergate dependent customers of alternative options.  Although Silvergate has indicated that its deposit related services remain unaffected, Circle is actively working to migrate any remaining services with Silvergate Bank.

Related blogs

View all
Company Updates

March 15, 2023 | Update on USDC operations

Team Circle | March 15, 2023

As of close of business March 15, Circle has cleared substantially all USDC minting and redemption backlogs and continues making progress toward full USDC liquidity operations.

Read story about March 15, 2023 | Update on USDC operations
USDC Operations
Company Updates

March 14, 2023 | Update on USDC Operations

Team Circle | March 14, 2023

The USDC reserve is held with BNY Mellon, except for limited funds held at transaction banking partners to support USDC minting and redemption, and is invested in the Circle Reserve Fund, managed by BlackRock and principally comprised of short dated U.S. Treasuries.

Read story about March 14, 2023 | Update on USDC Operations
Update on USDC and Silicon Valley Bank
Company Updates

An Update on USDC and Silicon Valley Bank

Team Circle | March 11, 2023

In a time of heightened uncertainty for the USDC economy, we remain committed to clear and transparent communication. As a regulated payment token, USDC will remain redeemable 1 for 1 with the U.S. Dollar.

Read story about An Update on USDC and Silicon Valley Bank