Circle appoints Cross River Bank as commercial banking partner

Stablecoin issuer Circle has chosen Cross River Bank as its banking partner after the collapse of Silicon Valley Bank.
Dot
March 13, 2023
Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

TABLE OF CONTENTS
Photo Source: Circle
In the words of Jeremy Allaire, “Trust, safety and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle, even in the face of bank contagion affecting crypto markets.”

Stablecoin issuer Circle has partnered with Cross River Bank for redeeming and minting USD Coin (USDC) after the collapse of the firm’s previous banking partner, Silicon Valley Bank (SVB).

On Saturday, Circle confirmed that the firm had a $3.3B exposure to SVB, causing a mass selloff of USD Coin (USDC) and a subsequent decline in the stablecoin’s price.

A recent tweet by Jeremy Allaire, co-founder of Circle, said appointing Cross River Bank as its banking partner will enable an automated settlement facility for USDC holders. Circle also reassured the crypto community by claiming that USDC reserves remain secure. 



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As per its press release, the firm will transfer the $3.3B sum from SVB to Bank of New York Mellon. BNY Mellon is responsible for providing custodial services to Circle, with BlackRock managing its active liquidity and assets. BNY Mellon currently holds $9.7B or 23% of USDC cash reserves.

USDC’s prices steadily rose following Circle’s announcement. As of writing, the stablecoin has regained its 1:1 peg to US Dollar (USD).

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Author's profile picture

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

Connect with Ayush on LinkedIn

Circle appoints Cross River Bank as commercial banking partner

HomeCustody
Contents
Photo Source: Circle
In the words of Jeremy Allaire, “Trust, safety and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle, even in the face of bank contagion affecting crypto markets.”

Stablecoin issuer Circle has partnered with Cross River Bank for redeeming and minting USD Coin (USDC) after the collapse of the firm’s previous banking partner, Silicon Valley Bank (SVB).

On Saturday, Circle confirmed that the firm had a $3.3B exposure to SVB, causing a mass selloff of USD Coin (USDC) and a subsequent decline in the stablecoin’s price.

A recent tweet by Jeremy Allaire, co-founder of Circle, said appointing Cross River Bank as its banking partner will enable an automated settlement facility for USDC holders. Circle also reassured the crypto community by claiming that USDC reserves remain secure. 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


As per its press release, the firm will transfer the $3.3B sum from SVB to Bank of New York Mellon. BNY Mellon is responsible for providing custodial services to Circle, with BlackRock managing its active liquidity and assets. BNY Mellon currently holds $9.7B or 23% of USDC cash reserves.

USDC’s prices steadily rose following Circle’s announcement. As of writing, the stablecoin has regained its 1:1 peg to US Dollar (USD).

Written by
Author's profile picture

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

Connect with Ayush on LinkedIn
Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

In the words of Jeremy Allaire, “Trust, safety and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle, even in the face of bank contagion affecting crypto markets.”

Stablecoin issuer Circle has partnered with Cross River Bank for redeeming and minting USD Coin (USDC) after the collapse of the firm’s previous banking partner, Silicon Valley Bank (SVB).

On Saturday, Circle confirmed that the firm had a $3.3B exposure to SVB, causing a mass selloff of USD Coin (USDC) and a subsequent decline in the stablecoin’s price.

A recent tweet by Jeremy Allaire, co-founder of Circle, said appointing Cross River Bank as its banking partner will enable an automated settlement facility for USDC holders. Circle also reassured the crypto community by claiming that USDC reserves remain secure. 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


As per its press release, the firm will transfer the $3.3B sum from SVB to Bank of New York Mellon. BNY Mellon is responsible for providing custodial services to Circle, with BlackRock managing its active liquidity and assets. BNY Mellon currently holds $9.7B or 23% of USDC cash reserves.

USDC’s prices steadily rose following Circle’s announcement. As of writing, the stablecoin has regained its 1:1 peg to US Dollar (USD).

Written by
Author's profile picture

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

Connect with Ayush on LinkedIn
Written by
Ayush Pande