According to its new financial audit report in January, Circle, the publisher of dollar coins, has an open approach to the US banking system of close to $9 billion. Circle's risk reserves are held in several regulated financial companies in the country, including SilverGate, Silicon Valley Bank of America (SVB) and New York City Mellon Bank.

As of January 31, regulated financial companies in the US held $8.6 billion, or about 20 per cent of their reserves, according to the report. In addition, $33.6 billion in reserves are held by BlackRock's U.S. Treasury bonds managed by Circle Reserve Fund, which is registered as a government currency fund and held by Bank of New York City Mellon.

At this stage, it is not clear how much cash reserves SVB holds in Circle. Many of the banks that hold the company's reserves include China Citizen Private Equity Bank, Customers Bank, New York City Community Bank, owned by the Flagstar Bank Group, and Signature Bank. USDC is the second-largest stable bank, with a supply of $42 billion in circulation as of January 31.

Circle's January report was reviewed and verified by Deloitte, the big four accounting firms. Cointelegraph contacted Circle before the release, but did not immediately receive a response from Circle.

SVB is one of the largest lenders in the United States and is an important participant in venture capital firms. The bank was shut down by California's Department of Financial Industry maintenance and Innovation on March 10, adding to worries about the future. The Federal Deposit Insurance Corporation is identified as the receiver to protect insured savings.

Dave Weisberg, co-founder and CEO of CoinRoutes, an algorithmic trading service, told Cointelegraph that "more comprehensive diffusion of material has emerged" and that "the flames are likely to gradually become a reality". This will seriously harm many start-ups and technology companies in the United States-a key area of "steady growth of the American economy."

Weisberg also mentioned:

"A lot of technology limited companies-- start-ups and all kinds of technology limited companies-- are very open to SVB. If government departments do not intervene and implement some form of assistance efficiently, it is estimated that such enterprises will not be able to pay their employees' wages and lay off people, which is likely to lead to a rise in unemployment.

Earlier this week, Silvergate Capital announced plans to shut down its data encryption banking units because of "recent market and regulatory trends." According to the company, the settlement plan includes "full repayment of the full guarantee". SilverGate is the key data encryption for commercial banks-the legal gateway ip Internet is the main channel of digital currency in the United States.

Circle denies that there is any contact with Silvergate at this stage. According to a statement on March 4th, Circle transferred "a small portion of its USDC reserve savings" to other bank partners.

Previously, insiders told the Cointelegraph that the US government was harmonizing its regulatory crackdown on banks that log in to password companies, using several organizations to prevent traditional institutions from interacting with new industries.