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https://www.barrons.com/articles/silvergate-stablecoins-bitcoin-fdic-banking-a355da8a

Struggling Silvergate Bank Held Reserves for Major Stablecoins, Raising Investor Protection Questions

By
Joe Light
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Stablecoins are supposed to be the bedrock of the crypto market, faithfully staying pinned to the dollar, even as tokens like Bitcoin swing wildly in value.

But until recently, some reserve assets backing stablecoins were held at  Silvergate Capital (SI), a bank now struggling to stay afloat. That is raising concerns about whether some stablecoins could have been at risk of not being fully backed and what protections investors would have if a bank failed, experts say.

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