• Tether, the stablecoin pegged to the U.S. dollar, has no exposure to Silvergate Bank; CTO of Tether, Paolo Ardoino, made this announcement on Twitter.
• Circle’s USDC stablecoin is exposed to Silvergate, but all customer assets remain safe and secure according to a tweet from Circle.
• Silvergate Capital saw a 45% decline in its stock due to the postponement of its annual 10-K report and evaluations of recent events that took place after the end of 2022.
Tether’s No Exposure to Silvergate Bank
Today, on the heels of a significant announcement involving US bank Silvergate – which had ties with cryptocurrency lender FTX and is now facing an increasing consortium of capital flight and scrutiny from regulators – at least two crypto companies took to social media today to announce how this news has affected them.
Tether, the stablecoin pegged to the U.S. dollar and backed “100% by Tether’s reserves” according to its website, took to Twitter today announcing it had no exposure to the California bank. According to Paolo Ardoino, CTO of Tether, there was no exposure between them and Silvergate Bank.
Circle’s USDC Stablecoin Exposure
However, this is not so for another stablecoin: USDC. In a separate tweet released Mar 2nd., Circle reported that despite its exposure to Silvergate Bank, 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,“ they posted on Twitter.
Silvergate Capital Stock Drop
Silvergate Capital – holding company for Silvergate Bank – saw a drop in their stocks due March 2nd due tp postponed release of their annual 10-K report as well as evaluation processes taking place after 2022 came about officially closed out.. The company’s stock fell by 45% by end day; earlier it faced losses up 48%. As result year-to-date losses widened 57%.
Market Cap & Reserves
USDT & USDC make up two biggest stablecoins market cap wise; each accounting for $71 billion & $42 billion respectively as per CryptoSlate report published recently Wall Street institution Cantor Fitzgerald reportedly manages $39 Bn USDT reserves include approx $39 billions US Treasury bills listed reserves held back Tether itself