Which players in the cryptocurrency ecosystem are affected by the fall of Silicon Valley Bank?

Who in the crypto ecosystem is exposed to Silicon Valley Bank?

Faced with the panic caused by the fall of Silicon Valley Bank (SVB), it is interesting to wonder about the actors who could be affected, in order to estimate the risk of contagion to the cryptocurrency ecosystem. Of course, the center of this news remains Circle’s USDC, with 3.3 billion of cash locked up at this trusted third party, which led to the depeg of the stablecoin.

Of course, this is not the only actor impacted. According to journalist Lauren Hirsch, there would be the bankrupt platform BlockFi, who reportedly owns $227 million at SVB. These cash being held in a mutual fund would therefore not be insured. Furthermore, it could conflict with the obligations of Chapter 11 of the United States bankruptcy law:

Per new bankruptcy filing, BlockFi has $227m in Silicon Valley Bank. The bankruptcy trustee warned them on Mon that bc those funds are in a money market mutual fund, they’re not FDIC secured — which could be a prblm w/ keeping in compliance of bankruptcy law pic.twitter.com/hnpo8anrrS

— Lauren Hirsch (@LaurenSHirsch) March 10, 2023

For their part, our colleagues from Decrypt have alerted the Pantera Capital investment fund, indicating that according to a file filed with the Securities and Exchange Commission (SEC) last month, the company would only have three custodians for its holdings, including Silicon Valley Bank. Without further information on the subject, it will be necessary to insist on the conditional and to follow any announcements on this subject, the fund having invested in a number of projects in the ecosystem.

As for Avalanche Foundation, the entity behind the development of the Avalanche ecosystem (AVAX) has claimed no exposure to Silvergate Bank, but confirms having $ 1.6 million blocked at SVB :

In light of recent news, we would like to confirm that the Avalanche Foundation has no exposure to Silvergate and a little over $1.6mm of exposure to Silicon Valley Bank. Avalanche Foundation is saddened by the news about SI and SIVB, and hope that all depositors are made whole.

— Avalanche 🔺 (@avalancheavax) March 10, 2023

Still according to our colleagues from Decrypt, the famous non-fungible token (NFT) studio Yuga Labs would also have a “super limited financial exposureto SVB.

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Actors confirmed to have no exposure

While some companies and projects have revealed exposure to Silicon Valley Bank, others have on the contrary reassured the community. French side, this is the case of Coinhouseas reported by its CEO Nicolas Louvet, specifying that this was also the case for other banking establishments in difficulty:

🏦 Tech bank crisis in the US:
👉 The partner banks of @CoinhouseHQ are Société Générale, Crédit Agricole, Fidor (BPCE group).
We have no business, financial or relationship of any kind with Silicon Valley Bank, Silvergate or Signature Bank.

— Nicolas Louvet (@LouvetNicolas) March 10, 2023

RealT, which allows real estate tokenization, also confirmed not to be exposedin an email sent this afternoon to these users:

“RealT’s main banking partner is based in Florida and has nothing to do with Silicon Valley Bank in California. »

However, paying RealT tokens with USDC or xDAI must be done at the current exchange rate of said stablecoinsnot the dollar value they are supposed to represent.

Among the other players not maintaining relations with Silicon Valley Bank, announcements have been made to this effect by various managers of KuCoin, Solana Labs and Solana Foundation, or even Polygon.

Whether for those who are impacted, or those who are not, This list is by no means exhaustive.. More announcements will come from the various projects in the ecosystem, and as we have seen time and time again, the contagion effect can spread quickly from one company to another.

👉 Also in the news – DAI, USDD, FRAX: USDC loss of peg affects other stablecoins

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Sources: Decrypt, Twitter, Email

I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.

Vincent Mayor

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