/biz/ - Business & Finance

>>53412707
>>53412488
My own speculation is that these issues that are happening with these two banks and the crypto exchanges making these trades are related to USDC. Silvergate and Signature are custodians of up to $10 billion in USDC assets. Circle is one of the participants making these trades and they are the issuer of USDC. There are more than a few articles out there about the unprecedented run on USDC liquidity from binance, as the USDC is being reshored from binance by struggling financiers or potentially by the custodian banks themselves. USDC claims 65% of USDC is collateralized by treasury bills, but that's also another way of saying 35% isn't collateralized by treasury bills. So if they've collateralized them with crypto, stock investments, or corporate bonds then you have the same issue that money markets faced in 2008 if the face value of any of their collateral drops below par.