SVB Financial News

The aftermath of the collapse of SVB and Signature bank has been felt by the stablecoin market and various holders alike. However, Ethereum [ETH] managed to benefit from the chaos that ensued following these events.

Last week, another major quake shook crypto markets. Silvergate Bank — a crypto-fiat gateway network for financial institutions and a significant on-ramp for cryptocurrencies in the United States — shut down operations due to liquidity problems. 

Bitcoin and Ethereum were both up by more than 9% in the last 24 hours retracing their weekend losses and propping up the crypto market. The stablecoins also saw a surge as they regained their peg. 

The cryptocurrency market has had a tumultuous few days; Bitcoin and other digital assets took a tumble before recovering late in the week to recoup some of their losses.  

British startup founders are preparing to significantly lower their exposure to Silicon Valley Bank after the failed technology lender’s UK arm was narrowly rescued from insolvency via a buyout by HSBC on 13 March.

Financial markets have been engulfed with fear in recent days, as fears that a tumultuous sequence of banking crises could become a contagion in the sector.

Short-sellers have turned their focus to First Republic Bank as the Silicon Valley Bank collapse has pushed the share prices of the nearly four decades old bank to multi-year lows.

Cryptocurrency investment products lost 10% of assets under management last week as institutional investors rushed for the exit during the latest episode of market volatility prompted by the Silvergate and Silicon Valley Bank collapses.

In response to recent developments, Maker’s [MKR] price experienced a substantial increase of nearly 30% in the last 24 hours.

In this article

Popular stablecoin issuer Circle has announced that the $3.3 billion in USD Coin (USDC) reserve deposits held with Silicon Valley Bank will be fully recovered when banks reopen in the United States on Monday.

LONDON — U.K. startups are breathing a sigh of relief Monday, after HSBC announced it would buy a subsidiary of collapsed U.S. tech startup lender Silicon Valley Bank.

In this article

Even my mother is happy with the Silicon Valley Bank rescue plan.

The Silicon Valley Bank fallout has ripple effects on Chinese startups, particularly those backed by U.S. dollar-denominated funds.

In this article

In this article

U.S. regulators took control of a second bank Sunday and announced emergency measures to ease fears depositors might pull their money from smaller lenders after the swift collapse late last week of Silicon Valley Bank.

Circle is a Boston-based fintech company that provides payments and investment services using blockchain technology. USDC is a stablecoin issued by Circle and Coinbase, pegged to the value of the US dollar at a 1:1 ratio. It is one of the fastest-growing stablecoins, with a market capitalization of over $10 billion as of March 2022.

The price of XRP has gained slightly in the past 24 hours, rising by 0.5% after the coin recovered from a significant fall this past weekend.

stablecoin got caught up in the collapse of a California bank late last week, it reprised the now-famous maxim of Nobuhiro Kiyotaki and John Moore. “Evil,” the economists had claimed in a 2001 lecture, later made available as a paper of the same title, “is the root of all money.” Turning a popular aphorism on its head was a ploy by the professors to enliven a technical discussion. “Evil is a strong word,” they wrote. “You may find the moral category too severe for something as mild as breaking a promise. In which case, you may want to change the title to ‘Distrust Is the Root of All Money.’ But that wouldn’t have quite the same ring.” Events last week showed that Kiyotaki-Moore may have been right, not just in their analysis but also in their hyperbole: People accept and hold money not because it circulates freely and is widely used to store value, but because it helps the society overcome the scourge of broken promises. For something to aspire to money-ness, it must be free of even the slightest doubt in that regard. That was clearly not the case with Circle Internet Financial Ltd.’s USD Coin, or USDC, the No. 2 dollar clone behind Tether. News that around 8% of the crypto firm’s reserves were on deposit at Silicon Valley Bank, which was closed down by regulators Friday, sent the price of the stablecoin sharply below $1, falling to less than 85 cents before recovering. In the language of money-market funds — the older, more conventional cousins of blockchain-based stablecoins — USDC broke the buck. Circle may still keep its promise of redeeming all its coins 1:1 for dollar. But a small doubt that it may not be able to do so arose. Even if briefly, USDC has lost its claim of being money.