Devenez Insider

Silicon Valley Bank bankruptcy: what impact for the crypto industry?

No items found.

Saturday, March 11, 2023

The Californian bank, known as one of America's tech banks, has just collapsed in the space of two days. In particular, it held more than $3 billion in reserves of the USDC stablecoin, which is the second largest on the planet...

Until a few weeks ago, hardly anyone knew about Silicon Valley Bank. But for the past 48 hours, it has been the talk of the town: the Californian bank has just gone bankrupt in an extreme panic reminiscent of the 2008 financial crisis and the collapse of... Lehman Brothers.

Silicon Valley Bank is no small banking institution. It has just over $200 billion in assets under management. Its collapse is the 3rd largest bank failure in American history. Only Washington Mutual ($300 billion), which has since become a savings bank, and Lehman Brothers ($600 billion) are bigger bankruptcies.

The bank for start-ups and... crypto

Created 40 years ago, Silicon Valley Bank, based in Santa Clara, very quickly established itself as a key player in American Tech.

It finances start-ups, giants such as Shopify and Beyond Meat, the biggest funds on the planet (Andreessen Horowitz in particular), and works with players in the crypto... In particular, it manages part of the USDC stablecoin reserve of the American company Circle, which has confirmed that it has just over $3 billion in reserves blocked at the institution.

As soon as the information was confirmed, the 2nd largest stablecoin on the planet (around $40bn in capitalisation) began to rock. The USDC momentarily lost parity with the dollar. At the start of the weekend, it fell slightly below $0.90, before returning to around $0.95 after Circle announced in a statement that the company would "come what may" guarantee the value of its stablecoin.

Stablecoin fell sharply on March 11 before recovering (source: CoinMarketcap)

Heading 1

Heading 2

Heading 3

Heading 4

Heading 5

Heading 6

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Block quote

Ordered list

Item 1
Item 2
Item 3

Unordered list

Item A
Item B
Item C

Bold text

Emphasis

^Superscript

_Subscript

Cette analyse n'est pas un conseil en investissement. Elle a été rédigée sans prendre en compte votre situation personnelle et notamment votre situation financière, votre profil de risque et vos objectifs d’investissement.

Avant d’investir dans un produit, l’investisseur doit comprendre entièrement les risques et consulter ses propres conseillers juridiques, fiscaux, financiers et comptables.

Cet article est réservé aux abonnés insiders.

Les meilleurs news et analyses cryptos. Chaque semaine. 100% indépendant.

Devenir insider

Everything that matters n Web3

The best news and crypto analysis. Every Week. 100% independent.

Tokens in this article

No items found.

Projects in this article

No items found.

In this category

EXCLUSIVE: BPCE will allow its customers to invest in crypto assets in 2025

EXCLUSIVE: BPCE will allow its customers to invest in crypto assets in 2025

EXCLUSIVE: BPCE will allow its customers to invest in crypto assets in 2025

Bitcoin savings: Bitstack raises €5 million

Bitcoin savings: Bitstack raises €5 million

Bitcoin savings: Bitstack raises €5 million

Joseph Lubin (ConsenSys): "I always thought that companies and governments would adopt cryptos"

Joseph Lubin (ConsenSys): "I always thought that companies and governments would adopt cryptos"

Joseph Lubin (ConsenSys): "I always thought that companies and governments would adopt cryptos"