The Block: Circle USDC operations will resume when U.S. banks open Monday: CEO Allaire

Circle USDC reserves are “safe and secure” and liquidity operations will resume when U.S. banks open Monday, CEO Jeremy Allaire said on Twitter.

“We were heartened to see the US government and financial regulators take crucial steps to mitigate risks extending from the fractional banking system. 100% of deposits from SVB are secure and will be available at banking open tomorrow,” Allaire said. He tweeted after the New York Department of Financial Services announced it had seized Signature Bank, two days after Silicon Valley Bank was seized and the Federal Deposit Insurance Corp. took over as receiver. Federal officials said all customers at both banks would have access to their deposits. 

Allaire said “100% of USDC reserves are also safe and secure” and that it was transferring the $3.3 billion it had at SVB to BNY Mellon, which will handle settlements.

“With the closure of Signature bank announced tonight, we will not be able to process minting and redemption through SigNet, we will be relying on settlements through BNY Mellon,” Allaire said. “Additionally, we will be bringing on a new transaction banking partner with automated minting and redemption potentially as soon as tomorrow.”

Cryptocurrencies rallied this evening amid the news.

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