Silicon Valley Bank (SVB) is getting traction among many companies in the UK amid its struggling phase in the United States.
Silicon Valley Bank (SVB) reached a very bad financial situation three days ago. This bank was popular in the crypto sector because it supported crypto companies. In particular, SVB was one of the biggest banking partners of USDC stablecoin issuer company Circle. Currently, SVB holds 25% of the total USDC reserves.
On 10 March 2023, The Bank of England (BoE) suspended the financial operations of SVB’s UK branch and stated that the bank has a very “limited presence” in the U.K. and no “critical functions” supporting the financial system.
Also, a letter was signed by its founders and CEOs of UK tech companies, however, claimed that many fintech firms managed banking operations through SVB and will “therefore go into receivership imminently unless preventative action is taken.”
On 12 March 2023, Reuters reported that the Global clearing institution Bank of London wants to acquire SVB’s UK subsidiary and also this bank submitted its formal proposal.
“A consortium of leading private equity firms, led by The Bank of London, confirms it has submitted formal proposals to His Majesty’s Treasury, The Prudential Regulation Authority at The Bank of England, and the Board of Silicon Valley Bank UK,” as per reported statements.
Earlier this many reports claimed that many UK-based financial institutions want to acquire SVB’s subsidiary. The top companies which are in line to acquire this company are SoftBank-owned lender OakNorth Bank, and Abu Dhabi Investment vehicle ADQ.
The recently elected UK’s elected crypto-friendly Prime Minister Rishi Sunak said that corresponding agencies are working on this critical situation of SVB bank and soon all the bank customers will be able to access their funds.
In the US, the top three financial regulatory bodies confirmed that no one SVB depositors will face loss.
Read also: US financial watchdogs confirm no depositors will face loss amid bank failures