2023-03-13
Key Investors Reject Silicon Valley Bank Rebellion Over 100 VCs
The well-known Silicon Valley Bank (SVB), which has been in business for 40 years, is shutting down its activities. Nonetheless, many venture capitalists and investors have banded together to soften the shock in the event that the bank is acquired and adequately financed in order to lessen the impact of its failure on tech businesses.
A statement supporting SVB has been signed by about 125 venture capitalists and investors in an effort to lessen the effects of the bank's failure. Sequoia Capital and General Catalyst are two of the venture capital firms that support the claim.
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IOSG Ventures Claims There No Exposures To SVB, Silvergate, Or USDC Exchanges
The community has been reassured by IOSG Ventures, a venture capital company that finances blockchain projects, that it has no connection to Silvergate or SVB, two institutions that have been implicated in the recent de-pegging of USDC.
In a statement posted to Twitter, IOSG Ventures claimed that it had no exposure to SVB or Silvergate and had not exchanged USDC in the previous seven days. The message continued by urging the cryptocurrency community to "preserve decentralization," a reference to how crucial it is to maintain the decentralized nature of the bitcoin market and its independence from conventional financial institutions.
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Silicon Valley Bank UK Collapses, UK Tech Industry In Turmoil
The government has developed plans for an emergency funding lifeline to assist companies affected by the collapse of Silicon Valley Bank UK (SVB UK) and its parent company, which has shocked the UK IT industry.
In order to prevent more controversy, Chancellor Jeremy Hunt has labeled the problem a "high priority" and has been meeting with the Prime Minister and the Governor of the Bank of England late at night. Although the UK financial system is not at systemic risk, there is a "severe risk" to the technology and life sciences sectors, which include many of SVB UK's clients.
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Silicon Valley Bank Will Not Get Bailout, But US Treasury Secretary Still Offers Help
Following Silicon Valley Bank's abrupt collapse this week, US Treasury Secretary Janet Yellen has said that the government will not intervene to save the institution. Depositors have been reassured by Yellen that the government will support them during the closure, though. The bank has been taken over by the Federal Deposit Insurance Corporation (FDIC), and procedures are being devised to help US clients who may be harmed by the shutdown.
SVB Financial was shut down by California regulators after it attempted to sell and failed to raise funds. The financial sector is looking for explanations and a way ahead as a result of this being the worst banking failure since the 2008 financial crisis.
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After Fed's Announcement, USDC Returns to $1 Peg
Good events relating to Silicon Valley Bank's $3.3 billion in reserves held by Circle and its new banking partners have caused USDC to rise back near its $1 peg.
After assurance from CEO Jeremy Allaire that its reserves are secure and the company has new banking partners lined up for "banking open tomorrow morning," Circle's stablecoin USD Coin (USDC) is climbing back to its $1 peg.
At the time of writing, USDC is up 3.3% over the previous day to be trading at $0.99.
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Owing Concerns About Silicon Valley Banks Failing, Signature Bank Must Close
Federal authorities declared on Sunday that New York's Signature Bank had been shut down to protect clients and the financial system in the wake of the demise of California's Silicon Valley Bank.
A joint statement from the United States made the announcement. Federal Reserve, Department of the Treasury, and Federal Deposit Insurance Corporation (FDIC).
U.S. officials claim that a similar program has been issued for Signature Bank, which was shut down on Sunday due to Federal Reserve state restrictions, as they worry about the demise of Silicon Valley Bank.
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Acquisition Of UK Silicon Valley Bank Excites HSBC And JP Morgan
The shocking failure of Silicon Valley Bank (SVB) has drawn the interest of payment businesses taking part in the acquisition process, including two enormous institutions, HSBC and JP Morgan.
Sky News revealed on Sunday night that HSBC was considering a bid for the troubled technology-focused lender's British branch, joining many smaller rivals in the emergency sale process sparked by the parent company's US parent's transfer to government control.
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FED Announces $25B Bank Relief Plan, Reviving Market Energy
The possibility of some U.S. central banks failing (Silvergate, Silicon Valley Bank, or most recently, the closure of Signature Bank), the U.S. Banks and other depository institutions would receive $25 billion in support, according to the Federal Reserve (FED).
This sum of money will make sure that banks have enough liquidity to accommodate consumer withdrawal requests during such tumultuous periods.
The $25 billion Bank Term Financing Program, which offers loans with durations of up to one year to "banks, savings organizations, credit unions, and other qualified depository institutions," was announced in a statement on March 12.
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After Repeg, Circle Issued New $407.8M in USDC
Circle, a stablecoin mint, produced an additional $407.8 million USDC. The net change has increased to $463.8 million because to this week's greatest minting.
After revealing it has a $3.3 billion exposure to the failed bank, USDC was the stablecoin severely hurt by Silicon Valley Bank's bankruptcy last week. The runaway from USDC has been stronger as a result of this amount, which is significantly larger than the expected $1 billion. At one point, USDC's peg was $0.93, which was the lowest point in its existence.
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Coinbase Continues Staking Services Despite SEC Hurdle
Coinbase has reassured users that its staking services would continue and "may actually expand" despite the recent crackdown by the United States Securities and Exchange Commission (SEC) on staking services provided by centralized providers.
Coinbase detailed its modified staking terms and conditions beginning on March 29 in a new client email that was noted by well-known trader AltcoinPsycho through Twitter on March 10.
The representative from Minnesota is also commenting on the Biden administration's criticism of the 50 million Americans who own digital assets.
With the updated rules, Coinbase makes it clear that customers receive benefits through decentralized protocols rather than the exchange itself.
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Thanks for reading,
Mary
