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:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

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 (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

Tokenized private equity is the next “greatest” opportunity, BWR analyst Carlos Gonzalez Campo writes

article-image

Today Blockworks is launching Analytics 2.0, our greatly improved crypto data and analytics platform

article-image

Ethena and Securitize’s Converge will launch within the next three months

article-image

Sponsored

Ledn has positioned itself as a trusted CeFi leader in Bitcoin-backed lending

article-image

Yesterday marked the five-year anniversary of Solana’s genesis block

article-image

The Digital Asset Summit will feature TradFi and government reps speaking on broader adoption and who’s buying in