• Tether CTO Paolo Ardoino recently announced that the company has no exposure to Silvergate, a distressed US bank.
• The announcement follows increased scrutiny of the bank’s ties with USDC stablecoin.
• Circle commented that despite its exposure to Silvergate, customer assets remain safe and secure.
Tether Has No Exposure to Silvergate
Tether CTO Paolo Ardoino recently announced that the company has no exposure to Silvergate, a distressed US bank. The news comes after the distressed crypto bank’s ties with the USDC stablecoin are coming under increased scrutiny.
Silvergate Capital Stock Decline
Silvergate Capital, the holding company of Silvergate bank, saw a decline in its stock on March 2 due to the postponement of its annual 10-K report. The bank is currently evaluating recent events that took place after the end of 2022. Silvergate bank provides banking services to cryptocurrency firms. As a result, Silvergate Capital’s year-to-date losses widened to 57%.
In response to this news, Circle tweeted on Mar. 2 that despite its exposure to Silvergate, all customer assets remain safe and secure.“We are sensitive to the concerns around Silvergate and are in the process of unwinding certain services with them and notifying customers,“ Circle tweeted.
Market Cap and Reserves
USDT and USDC are the two biggest stablecoins by market capitalization, each accounting for $71 billion and $42.9 billion respectively. According to a recent CryptoSlate report Wall street institution Cantor Fitzgerald reportedly manages $39B of Tether’s reserves which includes approximately $39.2 billion of U.S Treasury bills .
Although both USDT & USDC have large market capitalization it is clear from various announcements made by both Tether & Circle that there is no direct connection between them & SilverGate Bank as such customer assets remain safe & secure .