Stablecoin USDC issuer Circle announced it has transferred the small percentage of USDC reserve deposits it held at Silvergate to its other banking partners, citing "ongoing uncertainty" at Silvergate Bank. 

On Tuesday, the cryptocurrency-focused lender Silvergate warned it was delaying its annual report and said it was evaluating its ability to operate as a going concern. Soon after the news, Circle and other cryptocurrency heavyweights including Coinbase Global and Galaxy Digital on Thursday dropped Silvergate Capital as their banking partner.

Circle says the winding down of exposure to Silvergate began last year, as indications of trouble and greater risk exposure in the crypto asset industry became more evident.

According to Circle, USDC reserves are spread across multiple well-capitalized banks in the US, and the Circle Reserve Fund accounts for roughly 80% of these reserves. Deloitte conducts monthly reviews and attestations of the total reserves, and the first attestation report is now available on Circle's website.

"Certain services that Silvergate Bank previously provided to the broader digital assets market have been suspended by Silvergate. This includes Silvergate’s Exchange Network (SEN), which a small number of Circle customers had used. Historically, this service provided a payment transfer network into Silvergate." Circle said. It is currently working to migrate any remaining services with Silvergate Bank.