{"id":565119,"date":"2023-03-17T21:00:00","date_gmt":"2023-03-17T18:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up\/"},"modified":"2023-03-17T21:00:00","modified_gmt":"2023-03-17T18:00:00","slug":"crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up\/","title":{"rendered":"# Crypto Biz: SVB collapses, USDC depegs, Bitcoin still up"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23d522424a9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23d522424a9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up\/#%E2%80%9D_Crypto_Biz_SVB_collapses_USDC_depegs_Bitcoin_still_up_%E2%80%9C\" >&#8221; Crypto Biz: SVB collapses, USDC depegs, Bitcoin still up &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up\/#Silicon_Valley_Bank_shut_down_by_California_regulator\" >Silicon Valley Bank shut down by California regulator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up\/#Circle_%E2%80%98able_to_access_33B_of_USDC_reserves_at_Silicon_Valley_Bank_CEO_says\" >Circle \u2018able to access\u2019 $3.3B of USDC reserves at Silicon Valley Bank, CEO says<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up\/#Breaking_Signature_Bank_closed_by_New_York_regulators_citing_%E2%80%98systemic_risk\" >Breaking: Signature Bank closed by New York regulators, citing \u2018systemic risk\u2019<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up\/#South_Korea_launches_%E2%80%98Metaverse_Fund_to_expedite_domestic_initiatives\" >South Korea launches \u2018Metaverse Fund\u2019 to expedite domestic initiatives<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto_Biz_SVB_collapses_USDC_depegs_Bitcoin_still_up_%E2%80%9C\"><\/span>&#8221; Crypto Biz: SVB collapses, USDC depegs, Bitcoin still up &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvYWUyYmE3NjgtZmFmOC00NzlkLWE4ODUtMTJmNTFlODVhOTBhLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>Crypto investors should know by now that it doesn\u2019t take much to topple a distressed multi-billion-dollar firm. On March 10, California regulators officially shut down Silicon Valley Bank (SVB) 48 hours after the company disclosed it was in financial distress. As Cointelegraph reported at the time, SVB is the first Federal Deposit Insurance Corporation (FDIC)-insured bank to fail in 2023. That crucial detail prompted federal regulators in the United States to step up and backstop SVB depositors before a bank run could ensue. Although government protections weren\u2019t enough to stem a massive drop in bank stocks once markets reopened on Monday, Bitcoin (BTC) and the broader crypto market soared. Did FDIC bail out Bitcoin? Only time will tell.<\/p>\n<p>The SVB fiasco triggered a short but intense period of fear and trepidation in crypto markets as Circle\u2019s USD Coin (USDC) depegged. The only thing Circle did wrong was holding a portion of its deposits at SVB when it collapsed. <\/p>\n<p>This week\u2019s Crypto Biz tries to make sense of SVB\u2019s failure and how it affected crypto markets. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Silicon_Valley_Bank_shut_down_by_California_regulator\"><\/span>Silicon Valley Bank shut down by California regulator<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On March 10, the California Department of Financial Protection and Innovation shut down Silicon Valley Bank and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointed FDIC as the receiver to protect insured deposits. The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> triggered a fire sale in crypto and financial markets as SVB was a top-20 U.S. bank by total assets. So, what compelled regulators to close the bank? Earlier in the week, SVB released its mid-quarter financial update, which disclosed a $1.8 billion loss tied to securities sales and the need to raise $2.25 billion to shore up operations. SVB was a trusted partner of many crypto-focused venture capital firms, but its demise was ultimately tied to duration risk, not crypto industry exposure. Washington put out the SVB fire quickly by announcing that all depositors, and not just accounts worth up to $250,000, would be protected. President Joe Biden later confirmed that shoring up depositors would not cost the taxpayer anything. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Customers lining up outside of Silicon Valley Bank at its Menlo Park, CA branch. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/SDNrSUC1C0\">pic.twitter.com\/SDNrSUC1C0<\/a><\/p>\n<p>\u2014 Cointelegraph (@Cointelegraph) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Cointelegraph\/status\/1634254701838360577?ref_src=twsrc%5Etfw\">March 10, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Circle_%E2%80%98able_to_access_33B_of_USDC_reserves_at_Silicon_Valley_Bank_CEO_says\"><\/span>Circle \u2018able to access\u2019 $3.3B of USDC reserves at Silicon Valley Bank, CEO says<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One of the companies caught in the crosshairs of SVB was stablecoin issuer Circle, which had $3.3 billion in reserves tied up at the failed bank. USDC lost stablecoin market share \u2014 and its peg to the U.S. dollar \u2014 once SVB collapsed because it wasn\u2019t clear if and when Circle could access its funds. At its lowest point, USDC fell to around $0.87. The stablecoin has since returned to par with the dollar, with Circle confirming it could access reserves held at SVB. Circle lost significant market share over the past week due to ongoing USDC redemptions. USDC\u2019s market cap currently stands at $38.4 billion, less than half of rival Tether, whose USDT is valued at nearly $73.6 billion. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Breaking_Signature_Bank_closed_by_New_York_regulators_citing_%E2%80%98systemic_risk\"><\/span>Breaking: Signature Bank closed by New York regulators, citing \u2018systemic risk\u2019<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>SVB wasn\u2019t the only crypto-friendly bank collapse this week. On March 12, the Manhattan-based Signature Bank was officially shuttered by the New York Department of Financial Services, allegedly to protect the U.S. economy and strengthen the public\u2019s confidence in the banking system. \u201cThe actions that we took today were designed to limit the consequences of the depositor outflows from Silicon Valley and from Signature and to reduce any spillover effects,\u201d a Treasury official reportedly said. Like SVB depositors, all accountholders at Signature will be made whole without affecting taxpayers. Signature Bank had nearly $89 billion in deposits as of Dec. 31, 2022. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/federalreserve?ref_src=twsrc%5Etfw\">@federalreserve<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/USTreasury?ref_src=twsrc%5Etfw\">@USTreasury<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FDICgov?ref_src=twsrc%5Etfw\">@FDICgov<\/a> issue statement on actions to protect the U.S. economy by strengthening public confidence in our banking system, ensuring depositors&#8217; savings remain safe: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/YISeTdFPrO\">https:\/\/t.co\/YISeTdFPrO<\/a><\/p>\n<p>\u2014 Federal Reserve (@federalreserve) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/federalreserve\/status\/1635043996321067008?ref_src=twsrc%5Etfw\">March 12, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3><span class=\"ez-toc-section\" id=\"South_Korea_launches_%E2%80%98Metaverse_Fund_to_expedite_domestic_initiatives\"><\/span>South Korea launches \u2018Metaverse Fund\u2019 to expedite domestic initiatives<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u201cMetaverse\u201d is still a vague and underdeveloped concept, but South Korea is taking it very seriously. Seoul\u2019s Ministry of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">Science<\/a> and ICT announced it would allocate 24 billion won ($18.1 million) toward metaverse development as part of a bigger pot worth 40 billion won ($30.2 million). The newly launched Metaverse Fund is said to support mergers and acquisitions of various metaverse-related companies \u2014 a move that could give the country an upper hand in the still-evolving sector. The metaverse arms race continues. As Cointelegraph reported earlier this month, Mark Zuckerberg\u2019s Meta won court approval to continue its metaverse acquisition plans.<\/p>\n<p><em>Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-biz-svb-collapses-usdc-depegs-bitcoin-still-up\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto Biz: SVB collapses, USDC depegs, Bitcoin still up &#8220; Crypto investors should know by now that it doesn\u2019t take much to topple a distressed multi-billion-dollar firm. On March 10, California regulators officially shut down Silicon Valley Bank (SVB) 48 hours after the company disclosed it was in financial distress. As Cointelegraph reported at&#8230;<\/p>\n","protected":false},"author":1,"featured_media":565120,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/ae2ba768-faf8-479d-a885-12f51e85a90a.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75936,91498,141254,75493,141269,117,72420],"class_list":["post-565119","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-circle","tag-metaverse","tag-signature-bank","tag-stablecoin","tag-svb","tag-business","tag-south-korea"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/565119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=565119"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/565119\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/565120"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=565119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=565119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=565119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}