<story><title>$3.3B of the ~$40 billion of USDC reserves remain at SVB</title><url>https://twitter.com/circle/status/1634391505988206592</url></story><parent_chain></parent_chain><comment><author>TacticalCoder</author><text>It&amp;#x27;s totally incredible that Circle, owned in big part by Coinbase, a HN unicorn which always tried to do things legally, ends up probably losing $1bn (about 30% of of $3.3 bn) due to good old regular banks doing what they do best: making customers deposits disappear.&lt;p&gt;Now Circle is sitting on $30 bn in short term US treasuries backing USDC and I don&amp;#x27;t think they&amp;#x27;re forced to give the yield back to people holding USDC, so Circle has to be minting something like, what, 1 billion yearly now that rates went up?&lt;p&gt;So they may be able to get away with eating a $1 bn loss.&lt;p&gt;Meanwhile the tether&amp;#x2F;Bitfinex fraud in the Bahamas is continuing to do just fine and its Circle&amp;#x2F;Coinbase&amp;#x2F;USDC that happen to be in trouble.&lt;p&gt;Because of an actual bank unrelated to crypto.</text></comment>
<story><title>$3.3B of the ~$40 billion of USDC reserves remain at SVB</title><url>https://twitter.com/circle/status/1634391505988206592</url></story><parent_chain></parent_chain><comment><author>whoisjuan</author><text>People say that this SVB fail is isolated and idiosyncratic but I see a lot of stress in the system.&lt;p&gt;If there&amp;#x27;s no solution to this debacle by Monday this is going to keep cascading with no predictable trajectory of where it ends.</text></comment>