Billions Worth of Crypto Trades at Risk as Bank Shutdowns Take Toll

The digital asset market is emerging from a turbulent year with a number of high profile explosions. Now, three stops in the banking industry — SVB Financial Group's Silicon Valley Bank, Silvergate Capital Corp. and signature bank — have unleashed a new set of tensions.

The failure of SVB caused a ripple effect in the crucial market for stablecoins after the digital asset giant Circle Internet Financial of the largest issuers of the widely used tokens known for their perceived security, revealed it had $3.3 billion in reserves The news caused Circle's token, USD Coin, to slide below its predicted 1-for-1 parity with the dollar, sending a shock through the market.

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