according to director Less than 72 hours after the collapse of Silicon Valley Bank (SVB), a prominent US tech bank, relief efforts began, Bob Elliott, chief investment officer of the Unlimited Fund, said on March 11. may have already started. Among other items, Elliott argued that “large banks are actively pursuing acquisitions of svb businesses,” and that the US Federal Deposit Insurance Corporation (FDIC) has pledged 95% of uninsured depositors to It plans to cover the acquirer, claiming that “50% of uninsured depositors will be paid next.” week. “
Hearings from some insiders:
– A major bank actively working to acquire the SVB business
-fdic considers insurance/liquidity covering up to 95% of uninsured depositors to acquirers
-Monday 250k on track
-50% of uninsured will be paid next week
Can’t verify myself, but seems worth sharing
— Bob Elliot (@BobEUnlimited) March 11, 2023
Cointelegraph reported today that stablecoin USD Coin (USDC) issuer Circle has more than $3.3 billion in reserves in troubled banks, out of a total of more than $40 billion. In addition, SVB reportedly holds an estimated $5 billion in funding for prominent blockchain venture capital firms such as a16z, Pantera Capital and Paradigm. Today, the USDC unpegged from a 1:1 US dollar peg to $0.87 per contract, then slowly re-pegged, with him trading at $0.95 at issuance.
Reports are currently unconfirmed, but multiple sources confirm that many different tracks are working toward a resolution, with depositors getting back “at least 50% of their deposits” by next week. increase. “In the long run, they are likely to recoup 90% or more, and it is very likely that a depositor will lose even a dollar,” said Hal Press, founder of investment firm North Rock LP. said.
On the same day, Mike Moïse, associate director of business advisory firm CrossCountry Consulting, made a similar statement. commentciting a secondary source:
“SVB customers unfreeze $250,000 on Monday and about 50% of the remaining balance will be distributed to depositors within a day or two on Monday (financial market accounts can be 100% Yes.) The rest depends on future recovery, which in most cases will be within three to six months.”
Earlier, DeFi analyst Loki Zeng estimated the net value of USDC at “$0.885 in extreme conditions and $0.985 in normal conditions,” adding, “If there were any problems, they would not be as severe as FTX. ” commented. Alex Svanevik, CEO of blockchain analytics firm Nansen, also said Circle and USDC “can succeed” as long as they have “top-class execution” in the next few days. Like USDC, the USDC-backed DAI stablecoin of over $3.1 billion has paired most of its losses, trading at $0.97 per coin at the time of issuance. Today, the issuer of DAI, Maker DAO, submitted an urgent proposal to amend the protocol’s risk he parameters following the USDC de-pegging event.