USD Coin (USDC), a stablecoin and the world's fifth-biggest cryptocurrency slumped to an all-time low on Saturday after it was revealed that Circle, the US-based firm operating the coin had invested $3.

USD Coin (USDC), a stablecoin and the world's fifth-biggest cryptocurrency slumped to an all-time low on Saturday after it was revealed that Circle, the US-based firm operating the coin had invested $3.3 billion of its reserves in the now-collapsed Silicon Valley Bank (SVB). USDC is a stablecoin, meaning its price is pegged to a reserve asset and in this case, the US dollar. However, after the revelation, the stablecoin broke its 1:1 dollar peg and fell as low as $0.87, before recovering to $0.90 at the end of the day. According to a statement released by Circle, $3.3 billion of USDC's $40 billion reserves are held at the SVB. "Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB," the company said in a tweet. "Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. economy and will follow guidance provided by state and Federal regulators." 1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB. — Circle (@circle) March 11, 2023 × Read more: Silicon Valley Bank crisis: What led to stock crash & what's next. Here's everything you need to know Gavin Newsom, governor of California, where SVB is headquartered, released a statement in the aftermath saying he was in communication with the White House and monitoring the situation. “Everyone is working with FDIC [Federal Deposit Insurance Corporation] to stabilize the situation as quickly as possible, to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy." WATCH | Silicon Valley Bank collapses in America's biggest banking failure since 2008 × Notably, SVB collapsed on Friday, a mere 48 hours after the bank’s announcement, which not only led to an aggressive decline in its stock resulting in a market loss of over $80 billion but also spurred panic among depositors and clients. It was the largest US bank failure since the 2008 financial crisis. The FDIC is now scurrying around to find another bank over the weekend that is willing to merge with SVB and stop the impending total collapse. Explained | How Silicon Valley Bank crisis unfolded in 48 hours (With inputs from agencies) WATCH WION LIVE HERE:

World’s fifth-biggest cryptocurrency USDC’s value falls after Silicon Valley Bank connection revealed

Is he for real? Indeed, no one really knows because Elon Musk frequently tweets 'bombshells' that indicate outlandish ideas. What then did the CEO of Tesla do this time? Elon Musk, the CEO of Twitter, has said that he is open to the possibility of purchasing the defunct Silicon Valley Bank. He made these comments in response to a Tweet from Razer co-founder and CEO Min-Liang Tan. Tan recommended that Musk acquire the bank and transform it into a digital bank.

WATCH | <a href="https://www.wionews.com/world/watch-bizarre-is-it-raining-worms-in-china-570896">BIZARRE! Is it raining worms in China?</a>

"I think Twitter should buy SVB and become a digital bank," he wrote on Twitter.&nbsp;In response to this, Musk wrote, "I’m open to the idea."

<img alt="Elon Musk buying SVB" data-entity-type="file" data-entity-uuid="7cc57e42-d443-4dd7-a671-adc6afbefb24" src="//cdn.wionews.com/sites/default/files/inline-images/Elon%20Muskkk.png" />

His remarks rapidly gained traction online. It drew a slew of interesting reactions from netizens. One user wrote, "It would certainly kickstart Twitter as a financial institution. Perhaps?"&nbsp;

Another user joked, "Yeah, give him something to keep him busy. He barely has anything to do."

One Twitter user even went on to suggest a new name for SVB, "The Bank of Elon, Musk Bank, Bank X, Blue Bird Bank, I can keep going."&nbsp;

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Musk, the founder of Tesla Inc. and SpaceX, acquired Twitter for $44 billion in a very contentious deal.

Silicon Valley Bank stated on Friday that it will be ceasing operations after the lender's statement that it would raise $2 billion in capital to cover losses sparked a significant sell-off.&nbsp;

Watch | <a href="https://www.wionews.com/videos/foreign-minister-bilawal-bhutto-admits-pakistan-unable-to-get-uns-attention-on-kashmir-570886">Foreign minister Bilawal Bhutto admits Pakistan unable to get UN’s attention on Kashmir</a>

Following the bank's announcement, the crisis developed in just 48 hours. It caused an aggressive decline in its stock that resulted in a market loss of over $80 billion but also sparked panic among depositors and clients. Many startups and venture capital firms rushed to withdraw their money.=

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Is he for real? Indeed, no one really knows because Elon Musk frequently tweets 'bombshells' that indicate outlandish ideas. What then did the CEO of Tesla do this time?

Is he for real? Indeed, no one really knows because Elon Musk frequently tweets 'bombshells' that indicate outlandish ideas. What then did the CEO of Tesla do this time? Elon Musk, the CEO of Twitter, has said that he is open to the possibility of purchasing the defunct Silicon Valley Bank. He made these comments in response to a Tweet from Razer co-founder and CEO Min-Liang Tan. Tan recommended that Musk acquire the bank and transform it into a digital bank. WATCH | BIZARRE! Is it raining worms in China? "I think Twitter should buy SVB and become a digital bank," he wrote on Twitter. In response to this, Musk wrote, "I’m open to the idea." His remarks rapidly gained traction online. It drew a slew of interesting reactions from netizens. One user wrote, "It would certainly kickstart Twitter as a financial institution. Perhaps?" Another user joked, "Yeah, give him something to keep him busy. He barely has anything to do." One Twitter user even went on to suggest a new name for SVB, "The Bank of Elon, Musk Bank, Bank X, Blue Bird Bank, I can keep going." Also Read | 1993 Mumbai blasts: 30 years on, scar of terror on Indian megacity still cuts deep Musk, the founder of Tesla Inc. and SpaceX, acquired Twitter for $44 billion in a very contentious deal. Silicon Valley Bank stated on Friday that it will be ceasing operations after the lender's statement that it would raise $2 billion in capital to cover losses sparked a significant sell-off. Watch | Foreign minister Bilawal Bhutto admits Pakistan unable to get UN’s attention on Kashmir Following the bank's announcement, the crisis developed in just 48 hours. It caused an aggressive decline in its stock that resulted in a market loss of over $80 billion but also sparked panic among depositors and clients. Many startups and venture capital firms rushed to withdraw their money.= WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

For real? Tesla CEO Elon Musk teases buying collapsed Silicon Valley Bank

SVB is the largest retail bank to fail since 2008. U.S. regulators shuttered Silicon Valley Bank (SVB) on Friday and took control of its deposits, in what amounts to the biggest retail banking failure since the global financial crisis.

Silicon Valley Bank collapses in America's biggest banking failure since 2008

US regulators have taken control over the Silicon Valley Bank (SVB) after it was shut down, marking the largest retail bank failure since the 2008 financial crisis.&nbsp;

The Federal Deposit Insurance Corporation (FDIC) on Friday announced that it has taken control of the customer deposits of the lender which are roughly around $175 billion. The regulator typically protects deposits of up to $250,000.

The bank primarily served technology workers and venture capital-backed companies, including some of the industry’s best-known brands.

The move came as the SVB was scrambling to raise money to plug a loss from the sale of assets affected by the Federal Reserve’s interest rate hikes.

The quick jump in interest rates meant that securities they had bought were selling for significantly less.&nbsp;

This sparked a rush of customer withdrawals amidst fears about the state of the banking sector.

The US regulator said they acted to "protect insured depositors" and that the bank offices would reopen and clients with insured deposits would have access to funds "no later than Monday morning". It added that money raised from selling the bank's assets would go to uninsured depositors.

<h2>Gravitas: Italy exposes China’s underground banking network</h2>

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Meanwhile, the chief executive officer of Silicon Valley Bank, Greg Becker, in a video message to the employees acknowledged the "incredibly difficult" 48 hours leading up to its collapse on Friday.

"It's with an incredibly heavy heart that I'm here to deliver&nbsp;this message," he said in the video seen by Reuters.

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The CEO said that he is cooperating with banking regulators to find a partner for the bank, but added that there is "no guarantee" that a deal will be struck.

According to the bank’s website, nearly half of the US technology and healthcare companies that went public last year after getting early funding from venture capital firms were Silicon Valley Bank customers.

It also boasted of its connections to leading tech companies such as Shopify, ZipRecruiter and one of the top venture capital firms, Andreesson Horowitz.

<h2>Markets collapse</h2>

The collapse of SVB hooked the global markets on Friday as banking shares across US, EU and UK were in red.

In the United States, First Republic Bank was among the hard-hit banks whose shares&nbsp; slumped 14.8 per cent, and Comerica, which slipped five per cent.

Larger banks like JPMorgan Chase and Bank of America had a mixed performance on Friday.

In London, shares in banking giant HSBC dropped 4.7 per cent, while Standard Chartered fell 4.4 per cent, Barclays 4.1 per cent and Lloyds 3.5 per cent, reports AFP news agency.

In the eurozone, Deutsche Bank tanked 10 per cent at one stage and closed down 7.4 per cent, while French lender Societe Generale slumped 4.5 per cent.

Asian stocks posted steep losses&nbsp;too.

(With inputs from agencies) 
 
&nbsp;

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US regulators have taken control over the Silicon Valley Bank (SVB) after it was shut down, marking the largest retail bank failure since the 2008 financial crisis.

US regulators have taken control over the Silicon Valley Bank (SVB) after it was shut down, marking the largest retail bank failure since the 2008 financial crisis. The Federal Deposit Insurance Corporation (FDIC) on Friday announced that it has taken control of the customer deposits of the lender which are roughly around $175 billion. The regulator typically protects deposits of up to $250,000. The bank primarily served technology workers and venture capital-backed companies, including some of the industry’s best-known brands. The move came as the SVB was scrambling to raise money to plug a loss from the sale of assets affected by the Federal Reserve’s interest rate hikes. The quick jump in interest rates meant that securities they had bought were selling for significantly less. This sparked a rush of customer withdrawals amidst fears about the state of the banking sector. The US regulator said they acted to "protect insured depositors" and that the bank offices would reopen and clients with insured deposits would have access to funds "no later than Monday morning". It added that money raised from selling the bank's assets would go to uninsured depositors. Gravitas: Italy exposes China’s underground banking network Meanwhile, the chief executive officer of Silicon Valley Bank, Greg Becker, in a video message to the employees acknowledged the "incredibly difficult" 48 hours leading up to its collapse on Friday. "It's with an incredibly heavy heart that I'm here to deliver this message," he said in the video seen by Reuters. Also read | Hamburg shooting: Police were tipped off about gunman's mental health The CEO said that he is cooperating with banking regulators to find a partner for the bank, but added that there is "no guarantee" that a deal will be struck. According to the bank’s website, nearly half of the US technology and healthcare companies that went public last year after getting early funding from venture capital firms were Silicon Valley Bank customers. It also boasted of its connections to leading tech companies such as Shopify, ZipRecruiter and one of the top venture capital firms, Andreesson Horowitz. Markets collapse The collapse of SVB hooked the global markets on Friday as banking shares across US, EU and UK were in red. In the United States, First Republic Bank was among the hard-hit banks whose shares slumped 14.8 per cent, and Comerica, which slipped five per cent. Larger banks like JPMorgan Chase and Bank of America had a mixed performance on Friday. In London, shares in banking giant HSBC dropped 4.7 per cent, while Standard Chartered fell 4.4 per cent, Barclays 4.1 per cent and Lloyds 3.5 per cent, reports AFP news agency. In the eurozone, Deutsche Bank tanked 10 per cent at one stage and closed down 7.4 per cent, while French lender Societe Generale slumped 4.5 per cent. Asian stocks posted steep losses too. (With inputs from agencies) WATCH WION LIVE HERE

Silicon Valley Bank shuts down amidst liquidity crisis, regulator seizes assets; global markets tank

The Silicon Valley Bank (SVB), one of the leading lenders in the United States has sparked a wave of panic in the country and brought down banking shares across the world. The development comes as the SVB announced a share sale to shore up its finances, but the plan did not go well on the Wall Street as investors went on a sell-off spree, triggering a crash in its shares. 
 
As concerns over the bank's financial position spooked the market, a person familiar with the matter said Greg Becker, the SVB Financial Group Chief Executive Officer held a conference call around 11:30 am with the bank's advising clients including its venture and capital investors for 10 minutes and urged them to 'stay calm' and to support the bank like they had been doing for the past 40 years. Now to understand what happened with one of the US's oldest lenders, it's important to look at why did it happen and what's next. Here's everything you need to know:

When and how did the crisis begin?

As per Google Finance, SVB's stock fell 60 per cent ($106.04) on Thursday and its bond posted record declines.

Back in 2021, the bank saw a massive influx in its deposits which jumped from $61.67 billion to almost $189.20 billion. As its deposits grew, it failed to generate its loan book fast enough to generate the yield it wanted to see on the deposited capital. To tackle this, the bank purchased a large mortgage-backed security (MBS) worth $80 billion for its hold-to-maturity (HTM) portfolio. Over 95 per cent of these MBS were for over 10 years, with an average yield of 1.56 per cent.&nbsp;

However, with the rise in Fed rates, the value of SVB's MBS decreased, as the customers could buy "risk free" bonds from the Fed at a 2.5x higher yield, meaning,&nbsp;with the rising value of the Fed, the value of existing bonds fell.&nbsp;

Who are the SVB's clients?

The United States' leading lender is deeply connected to startups, as its focuses on trade in Silicon Valley and tech startups only.&nbsp;

As per the bank's website, it does business with over 50 per cent of all US venture capital-backed startups and almost 45 per cent of US venture-backed tech and healthcare companies.

The SVB announced that it had sold $21 billion of its Available For Sale (AFS) securities at a $1.8 billion loss and was raising another $2.5 billion in equity and debt.&nbsp;

This came as a surprise for its investors, who thought that the bank won't sell its AFS securities. Prominent venture capitalists advised businesses and startups to withdraw their money from the bank.&nbsp;

According to Bloomberg, a high-profile VC firm, Founders Fund, asked its portfolio companies to move their money. Union Square Ventures and Founder Collective also advised their portfolio companies to pull their funds from the bank.&nbsp;

What could happen next?

With the ongoing crisis at the SVB, analysts have raised their respective concerns.

According to a founding engineer at Glean, Debarghya Das if tech companies and startups continue to pull their money out of the bank, the SVB might go bankrupt, and tech companies would be wiped out, raising the chances of recession. &nbsp;

The Silicon Valley Bank (SVB), one of the leading lenders in the United States has sparked a wave of panic in the country and brought down banking shares across the world.

The Silicon Valley Bank (SVB), one of the leading lenders in the United States has sparked a wave of panic in the country and brought down banking shares across the world. The development comes as the SVB announced a share sale to shore up its finances, but the plan did not go well on the Wall Street as investors went on a sell-off spree, triggering a crash in its shares. As concerns over the bank's financial position spooked the market, a person familiar with the matter said Greg Becker, the SVB Financial Group Chief Executive Officer held a conference call around 11:30 am with the bank's advising clients including its venture and capital investors for 10 minutes and urged them to 'stay calm' and to support the bank like they had been doing for the past 40 years. Now to understand what happened with one of the US's oldest lenders, it's important to look at why did it happen and what's next. Here's everything you need to know: When and how did the crisis begin? As per Google Finance, SVB's stock fell 60 per cent ($106.04) on Thursday and its bond posted record declines. Back in 2021, the bank saw a massive influx in its deposits which jumped from $61.67 billion to almost $189.20 billion. As its deposits grew, it failed to generate its loan book fast enough to generate the yield it wanted to see on the deposited capital. To tackle this, the bank purchased a large mortgage-backed security (MBS) worth $80 billion for its hold-to-maturity (HTM) portfolio. Over 95 per cent of these MBS were for over 10 years, with an average yield of 1.56 per cent. However, with the rise in Fed rates, the value of SVB's MBS decreased, as the customers could buy "risk free" bonds from the Fed at a 2.5x higher yield, meaning, with the rising value of the Fed, the value of existing bonds fell. Who are the SVB's clients? The United States' leading lender is deeply connected to startups, as its focuses on trade in Silicon Valley and tech startups only. As per the bank's website, it does business with over 50 per cent of all US venture capital-backed startups and almost 45 per cent of US venture-backed tech and healthcare companies. The SVB announced that it had sold $21 billion of its Available For Sale (AFS) securities at a $1.8 billion loss and was raising another $2.5 billion in equity and debt. This came as a surprise for its investors, who thought that the bank won't sell its AFS securities. Prominent venture capitalists advised businesses and startups to withdraw their money from the bank. According to Bloomberg, a high-profile VC firm, Founders Fund, asked its portfolio companies to move their money. Union Square Ventures and Founder Collective also advised their portfolio companies to pull their funds from the bank. What could happen next? With the ongoing crisis at the SVB, analysts have raised their respective concerns. According to a founding engineer at Glean, Debarghya Das if tech companies and startups continue to pull their money out of the bank, the SVB might go bankrupt, and tech companies would be wiped out, raising the chances of recession.

Silicon Valley Bank crisis: What led to stock crash & what's next. Here's everything you need to know

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World’s fifth-biggest cryptocurrency USDC’s value falls after Silicon Valley Bank connection revealed

For real? Tesla CEO Elon Musk teases buying collapsed Silicon Valley Bank

Silicon Valley Bank collapses in America's biggest banking failure since 2008

Silicon Valley Bank shuts down amidst liquidity crisis, regulator seizes assets; global markets tank

Silicon Valley Bank crisis: What led to stock crash & what's next. Here's everything you need to know