Crypto firms report exposure of at least $4 billion
Cryptocurrency companies have revealed an exposure of at least $4 billion, across Silicon Valley Bank (SVB) and Signature Bank. Assets worth up to $3.5 billion are stored in SVB, while $490 million are with Signature Bank. Circle, Paxos, Coinbase, BlockFi and Avalanche Foundation have publicly released and confirmed their exposure positions, while others like Dapper Labs, Ripple, Yuga Labs, Pantera, Proof Collective, Nova Labs and Techteryx have only shared that they are exposed, albeit on limited terms.
| Bank | Crypto's Exposure in USD |
|---|---|
| Silicon Valley Bank | $3,528,600,000 |
| Signature Bank | $490,000,000 |
| Grand Total | $4,018,600,000 |
Stablecoin issuer of USD Coin (USDC), Circle, has the highest exposure of $3.3 billion as announced through a tweet on March 11, 2023, which resulted in a massive outflow of 3.9 billion in USDC supply. Placing second and third after Circle are blockchain infrastructure platform Paxos and crypto exchange Coinbase with a reported $250 million and $240 million held in Signature Bank respectively.
While Binance is unaffected by Silicon Valley Bank’s fallout, the company has some level of exposure to Signature Bank, according to Forbes.
Singapore-based Techteryx has paused TrueUSD (TUSD) minting and redemption for its “small number of Signature Bank users”, though remains unaffected across the rest of its banking network.
Crypto’s Banking Crisis
Crypto-centric Signature Bank was among the few financial institutions that welcomed crypto assets deposits since 2018. Seized by state regulators on Sunday, March 12, just two days after SVB went into FDIC receivership on Friday, March 10, 2023, crypto firms and the broader industry may experience liquidity constraints until challenger banks step in to fill the gap.
Signature Bank is the third bank to shutter this month, after SVB’s abrupt closure and Silvergate Bank’s voluntary liquidation and wind down on March 8, 2023.
Methodology
This study examines cryptocurrency companies’ exposure to Silicon Valley Bank and Signature Bank in USD, based on news reports from Decrypt, CoinDesk and Forbes, and is accurate as of March 14, 2023.
Bitcoin Miner Marathon Digital’s $142 million cash deposit at Signature Bridge Bank (previously at Signature Bank) is noted to be secure and available, and as such have been excluded in the study.
The story is still developing and may be updated in light of significant events.
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Curious to understand more about the SVB crisis and its impact? Read this one we did on how the fallout has affected stablecoin supply.
Julia leads Growth at CoinGecko and is passionate about onboarding more women onto Web3. That said, she is generally poor at timing the market, so she DCAs for safety. Follow the author on Twitter @ngxinyajulia
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