In the Circle press announcement they shared that last week, prior to the collapse, they moved several billion into BNY Mellon, and 3.3 remained at SVB. They di

In the Circle press announcement they shared that last week, prior to the collapse, they moved several billion into BNY Mellon, and 3.3 remained at SVB. They didn’t say if they removed them FROM SVB to put them into BNY but they didn’t say they didn’t either and the “remained” leads to that assumption. They had pulled assets from Silvergate as well and then Silvergate collapsed, but they have no exposure to it. That tells you that Circle with its gigantic accounts may have realized the banks are vulnerable, pulled its money out (or been forced to by crypto investors cashing in their USDC), and that money is a disproportionately large share of the liquidity those banks were holding. When SVB was shuttered it was underwater by slightly less than a billion. Circle is not to blame, as they did what they probably had to do, but the size of Circle’s accounts would probably bring down most banks in these conditions. The banks partnering with large crypto whales in a high interest rate environment are likely in deep trouble. SVB was the perfect bank for startups, but its appetite for crypto and poor risk management likely caused the collapse. https://www.circle.com/blog/an-update-on-usdc-and-silicon-valley-bank?fbclid=IwAR1t3tRrUeMuGg-DD_6YzWirgPoDmzKIQ96P6PmZp8Rt9t4u82Z-kgNl6xQ https://www.circle.com/blog/an-update-on-usdc-and-silicon-va...