SVB Debacle: Circle, Avalanche, Coinbase, Other Crypto Giants Exposed to SVB

SVB Debacle: Circle, Avalanche, Coinbase, Other Crypto Giants Exposed to SVB

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Following the meltdown of Silicon Valley Bank, crypto firms have been disclosing whether or not they have notable exposure to the bank, however, Coinbase, Circle and other crypto giants all have notable exposure to the collapsed SVB. 

One of the crypto firms that disclosed its exposure is the bankrupt crypto lender BlockFi, according to a Friday filing, BlockFi has $227 million in funds at SVB, adding that the funds are not Federal Deposit Insurance Commission insured because they’re in a money market mutual the fund which itself may constitute a violation of bankruptcy law. BlockFi filed for creditors’ protection following the collapse of FTX exchange.

Also, Ripple CEO Brad Garlinghouse on Sunday said the company “had some exposure to SVB—it was a banking partner, and had some of our cash balance,” adding that Ripple expects that day-to-day running of the business continues and the company remains in a financially strong position.

Furthermore, the issuer of the second largest stablecoin USDC last Friday said SVB is one of the banking partners Circle uses for managing approximately 25% portion of USDC reserves, furthering that the firm will continue to operate normally while waiting for clarity on how the receiver will impact its depositors, since this information was disclosed, there has been a surge in the rate of withdrawal of holdings in USDC, leading to fear, uncertainty and distress surrounding the stablecoin.

Crypto-focused firm Pantera also has an undisclosed amount held in SVB.

Avalanche Foundation, a supporter of Avalanche blockchain, is as well exposed to the collapsed SVB, revealing on Friday that it has roughly $1.6 million held in the bank.

Another crypto firm with notable exposure is Yuga Labs, the maker of the Bored Ape Yacht Club NFT collection said it had “Super Limited” exposure to the bank. 

Proof, the company behind the leading NFT collections Moonbirds, on Friday confirmed its exposure to SVB, though it didn’t disclose the amount.

“Proof holds cash at SVB, however… We’ve thankfully diversified our assets across ETH, stablecoins, as well as fiat,” the company Tweeted Friday.

Nova Labs co-founder also confirmed exposure to SVB.

“Nova Labs has some $ stuck in SVB, but the vast majority is in other institutions,” Nova Labs CEO and Helium co-founder Amir Haleem said.

Also, Armstrong Coinbase said it has $240 million held in SVB, and as stated by FDIC, Coinbase expects to recover those funds fully.

Paxos, the issuer of Binance USD stablecoin just ran into trouble with the US regulators said it had no exposure to the collapsed SVB, also has no exposure, the company’s CEO confirmed in a tweet.

Kraken, Binance, Dapper Labs, Tether, Polygon, and Solana, amongst others, are among the crypto firms with no exposure to SVB.

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