$3.3B of the ~$40 billion of USDC reserves remain at SVB
It's totally incredible that Circle, owned in big part by Coinbase, a HN unicorn which always tried to do things legally, ends up probably losing $1bn (about 30% of of $3.3 bn) due to good old regular banks doing what they do best: making customers deposits disappear.Now Circle is sitting on $30 bn in short term US treasuries backing USDC and I don't think they're forced to give the yield back to people holding USDC, so Circle has to be minting something like, what, 1 billion yearly now that rates went up?So they may be able to get away with eating a $1 bn loss.Meanwhile the tether/Bitfinex fraud in the Bahamas is continuing to do just fine and its Circle/Coinbase/USDC that happen to be in trouble.Because of an actual bank unrelated to crypto.