FDIC Backstops Billions in Deposits for Top Tech and VC Customers
Circle, the issuer of USDC stablecoin, was the top depositor aided by a government-backed guarantee of Silicon Valley Bank (SVB), according to FDIC documents. The move reignited a debate over whether the government was effectively allowing financiers to take excessive risk. Circle briefly de-pegged from the dollar after SVB exposures were revealed in March, but its CEO said the company has strengthened its infrastructure since the incident.