🚨 USDC Depegs due to exposure to Silver Valley Bank ! Tether and Paxos already claimed that they don't have any exposure to SVB, though busd also Depegs. While tether is at premium as most of people converting usdc to usdt. Point to Note : As of 2nd March, Circle had around 25% of total mcap of USDC which is equivalent to $11B reserves as cash in 7 banks including SVB. This hints they may have around 2-5% reserves in SVB While funds deposited with SVB still have chance of recovery, as they have ample amount of assets and funds which are now controlled by FDIC. so they may recover some of funds from SVB. Problem is if USDC bank run happens then marketcap will drop and early exits will get 1:1 swaps for usdc:usd while latecomers may have nothing to redeem in worst case. So keep watching mcap and usdc burn/mint transactions. As per latest tweet, 8% of total USDC reserve lying with SVB and inaccessible to redeem/transfer.