Specifically, on March 9, Circle initiated a wire transfer to remove its funds from SVB as the FDIC-insured bank was about to shut operations. However, two days later, on March 11, Circle confirmed that the wire transfers were not wholly processed, with $3.3 billion of USDC reserves still with SVB.

Almost immediately, leading crypto exchanges Binance and Coinbase both said that they would temporarily suspend USDC conversions as the contagion from the collapse of SVB plays out.

Citing "current market conditions" without naming Silicon Valley Bank, Binance said it has temporarily suspended auto-conversion of USDC to BUSD.