The impact of the Silicon Valley bank failure is ── $ 902 million USD coin withdrawn from the exchange | coindesk JAPAN | Coindesk Japan

Silicon Valley Bank, known for lending to startups, has collapsed. The bankruptcy of a US bank is the largest since the 2008 Lehman Brothers bankruptcy.

For the crypto-asset industry, this is a big blow, on par with the voluntary liquidation of crypto-friendly Silvergate Bank. In particular, the issuer of the USD coin (USDC), which had a considerable amount of reserves deposited in the Silicon Valley Bank, is attracting attention.

According to Circle, USDC has $43.1 billion in circulation and $43.2 billion in reserves. Twenty-six percent of the reserves, or $11.4 billion, are held in cash at banks such as Silicon Valley Bank and Silvergate Bank.

Circle has already transferred some of its reserves from Silvergate to other banks, but the influence of Silvergate Bank and Silicon Valley Bank doesn’t stop there.

In the past 24 hours, $902 million USDC has been withdrawn from centralized exchanges, according to blockchain analytics firm Nansen. In the past seven days, it has reached about $ 3 billion (about 408 billion yen).

“People are preparing for the worst, moving to more trustless assets,” said Charles Story, head of growth at crypto index platform Phuture.

market tilting slightly more towards USDT > USDC over past 24hrs pic.twitter.com/S7yaO48ObU

—Will Sheehan (@wilburforce_) March 10, 2023

According to Nansen, the wallets with the most USDC balances are Binance, MakerDAO, Arbitrum, Polygon, Crypto.com, Voyager, and Arbeit. (Aave), Optimism, dYdX, Compound, etc. It shows the size of USDC’s presence in crypto assets.

USDC holding balance (Nansen)

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Nansen
｜Original: Crypto Wallets Withdraw $902M USDC From Centralized Exchanges in Past 24 Hours Amid SVB, Silvergate Shutdowns