The cryptocurrency firm’s operations have been hit by the signature bank’s closure

State regulators closed Signature Bank in New York on Sunday. (File)

The head of cryptocurrency firm Circle said on Sunday that the firm will no longer be able to process withdrawals and redemptions through Signature Bank after the New York state shutdown and will handle settlements through BNY Mellon.

Circle, the company behind the stablecoin USD Coin (USDC), plans to launch a new transaction banking partner with automated money creation and redemption, possibly as soon as Monday, Circle founder and CEO Jeremy Allaire tweeted.

State regulators shut down Signature Bank in New York on Sunday, just two days after California authorities shut down Silicon Valley Bank (SVB), sending shockwaves through global markets and wiping out billions of dollars in deposits.

“With the closing of Signature Bank tonight, we will no longer be able to process withdrawals and redemptions through SigNet, we will be relying on settlements through BNY Mellon,” said Jeremy Allaire.

Amid the Silicon Valley bank collapse, Jeremy Allaire said all deposits from SVB are safe and available when banks open in the United States on Monday morning.

“100% of the USDC’s reserves are also safe and secure, and we will complete the transfer of the remaining SVB cash to BNY Mellon,” Allair added.

USDC lost ground against the dollar and fell to an all-time low on Saturday before recovering most of its losses after Circle assured investors that it would respect the price despite the impact of the failed Silicon Valley bank.

Circle said in a tweet on Friday that the Silicon Valley bank has $3.3 billion of its $40 billion USDC holdings.

(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)

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