- A released FDIC document shows the US government guaranteeing deposits of ten top customers of Silicon Valley Bank (SVB), exceeding the $250,000 FDIC protection limit per account.
- The guaranteed deposits, which amounted to over $12.75 billion, were made following SVB’s notable collapse in March 2023.
The US government, through the Federal Deposit Insurance Corporation (FDIC), has intervened in the wake of the Silicon Valley Bank’s (SVB) dramatic collapse in March, guaranteeing the deposits of its ten largest customers. This surprising revelation stems from an unredacted document, inadvertently released by the FDIC in response to a Freedom of Information Act request from Bloomberg.
Interestingly, the document not only reveals the identity of the bailed-out firms but also discloses their total deposits. These figures far exceed the standard FDIC protection limit of $250,000 per account. The document’s contents spark a discussion about the disparities in financial safeguards during economic crises.
Stablecoin issuer Circle emerges as SVB’s top depositor with an astonishing $3.3 billion in deposits. This Boston-based firm had $3.3 billion of the $40 billion supporting its stablecoin USD Coin (USDC) tied up in the collapsed bank.
Venture capital heavyweight Sequoia, managing $85 billion in assets, also graced the list with its substantial $1.1 billion in deposits at SVB. The document shows that Silicon Valley Bank and its parent entity, Silicon Valley Group, collectively received a staggering $4.6 billion.
Online recruitment services firm, Kanzhun Limited, had deposits exceeding $902.87 million with SVB, making it a significant entrant in this scenario. Meanwhile, California-based fintech firm Bill.com had a balance of $761.10 million in SVB.
Also featured is Altos Labs, a biotech research company, with over $680.34 million stored in SVB. Card issuing platform Marqeta had deposits exceeding $634.53 million, while streaming device provider Roku had about $420 million in SVB. IntraFi, providing FDIC-insured deposit solutions to larger entities, wrapped up the list with a total balance of $410.85 million in SVB.
In summary, the US government undertook the onerous task of securing over $12.75 billion in deposits for SVB’s ten wealthiest customers, once again highlighting the substantial support extended to high-profile entities during financial crises.
