• Tether CTO Paolo Ardoino announced today that the stablecoin has no exposure to Silvergate, a distressed US bank.
• Circle also commented on their exposure to the bank, saying customer assets remain safe and secure.
• Silvergate Capital’s stock dropped significantly due to postponement of its annual 10-K report.
Tether Announces No Exposure To Silvergate Bank
Tether (USDT) CTO Paolo Ardoino announced today that the stablecoin has no exposure to Silvergate, a distressed US bank. This news comes after increased scrutiny of the bank’s ties with USD Coin (USDC).
Circle Acknowledges Exposure To Bank
Circle also commented on their exposure to the bank, saying customer assets remain safe and secure despite being exposed to Silvergate. They are in the process of unwinding certain services with them and notifying customers about this development.
Silvergate Capital Faces Significant Stock Losses
Silvergate Capital’s year-to-date losses widened to 57% due its stock dropping by 48.8% earlier in the day, followed by a 45% drop by the end of the day. The company is currently evaluating recent events that took place after the end of 2022.
Market Cap & Reserves Of Stablecoins
USDT and USDC are both major stablecoins in terms of market capitalization – $71 billion and $42.9 billion respectively – while Wall Street institution Cantor Fitzgerald reportedly manages $39B of Tether’s reserves including approximately $39.2 billion of U.S. Treasury bills.
In conclusion, it appears that Tether had no direct ties with Silvergate Bank but Circle does have some degree of exposure which could pose risks for customers‘ assets; however these assets remain safe and secure according to Circle’s statements today . On the other hand, Silvergate Capital is facing significant losses as investors worry about its future prospects given recent events at the end of 2022