Circle was SVB’s biggest client: report

The stablecoin issuer’s SBV holdings were backstopped by the FDIC

article-image

Circle CEO Jeremy Allaire | Eóin Noonan for MoneyConf (CC license)

share

Turns out that, at least for a time, stablecoin issuer Circle was reportedly the single largest asset-weighted customer of Silicon Valley Bank. 

Silicon Valley Bank (SVB) collapsed earlier this year, with the venture capital banking favorite going down as one of a series of overextended US banks that met their demise amid mounting withdrawal pressure. 

Citing a Freedom of Information Act (FOIA) request, Bloomberg reported on Friday that Circle was the top depositor at SVB. Circle does business as Circle Internet Financial. 

Loading Tweet..

Bloomberg reported that the Federal Deposit Insurance Corp. told the publication that the document in question was inadvertently released in its unredacted form.

An FDIC spokesperson declined to comment to Blockworks, and a spokesperson for Circle did not immediately reply to a request for comment. 

Circle held about $3.3 billion at SVB around the time of the bank’s collapse in March, and the USDC issuer then pledged to “stand behind USDC.” The document obtained by Bloomberg states the Circle held the top spot in a ranking of both the top 10 depositors and the top 10 accounts — suggesting that Circle maintained more than one account at SBV. 

The FDIC stepped in to insure all SBV deposits after the bank went under, not just deposits under the federal agency’s typical $250,000 threshold. 

Circle’s USDC stablecoin had depegged from its one-to-one dollar mooring when SBV headed for bankruptcy, raising crypto industry questions as to the extent of the damage from ties to SBV and other banks that went on to fail, including Signature and Silvergate. 

Circle in the aftermath started doing due diligence on and tapping a number of new prospective banking partners, including striking an agreement with Cross River Bank, to facilitate the usage and transfer of USDC and the company’s other products. 

Read more: After Bank Failures, Where Will Crypto Firms Turn?

Dollar-pegged stablecoins booked a relatively quick recovery after their initial demooring. Ample is crucial to ensuring stablecoins adhere closely to the price of the asset they are pegged against.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

As Satoshi-era wallets saw over $8 billion worth of BTC on the move, Congress is gearing up for “Crypto Week”

article-image

Bitcoin’s runaway success was partly driven by Slashdot

article-image

Blockworks Research data shows that VC spending is back on the rise after a slow May

article-image

After rejecting a bid from the AI cloud-computing startup last year, Core Scientific agreed to be acquired in a deal expected to close by Q4 2025

article-image

Sponsored

Plume’s collaboration with TRON will unlock cross-chain RWA yield for one of the world’s largest blockchain ecosystems

article-image

Who needs gold when you have taxes?