Banks
Cryptocurrency Community Debates Fallout from Closure of Major American Banks
The closure of three major American banks that serve cryptocurrency firms, including Silicon Valley Bank and Signature Bank, has sparked debate within the cryptocurrency community. The closure of Silicon Valley Bank, which held over $3.3 billion of USD Coin issuer Circle's $40 billion reserves, has caused particular concern. As a result, the cryptocurrency ecosystem is now exploring neobank services and other options to bridge the gaps exposed by the latest mainstream banking failure.
Banks increase risks to stablecoins
The death of the Terra ecosystem triggered a bear market in 2022, causing losses in billions, affecting investor sentiment, and intensifying the regulatory spotlight over cryptocurrencies. Recently, Circle's disclosure that Silicon Valley Bank (SVB) did not process its $3.3 billion withdrawal request led to the depegging of its USD Coin (USDC). This event caused Binance CEO CZ to believe that traditional banks are a risk to stablecoins that are usually pegged 1:1 with fiat currencies, like the U.S. dollar.
US Crypto Holders Trust Banks and Exchanges for Custody
A recent survey by Paxos revealed that a majority of US crypto holders still trust banks, exchanges, and mobile payment apps for custody of their assets. Despite high-profile collapses and poor risk management practices, crypto owners continue to trust intermediaries for holding crypto assets. The survey also found an increasing desire among consumers to purchase Bitcoin and other digital assets from traditional banks, presenting a significant untapped opportunity for banks to expand their offerings.
Citizens Trust Bank Holds $65 Million in USD Coin reserves
Citizens Trust stated the USDC reserves would support financial literacy and small business funding.
The Fed Rejects Custodia Bank's Membership Application
The Fed rejected cryptocurrency-focused Custodia Bank membership again, citing "sound banking operations."
DZ Bank to Integrate Digital Currencies Into Asset Management Services in collaborated with Turkish technology company
Metaco has also worked with Togg and UnionBank of the Philippines.
Custodia Bank CEO Caitlin Long Slams Regulators
The Custodia Bank CEO joins other crypto leaders in criticizing Washington's "regulation by enforcement" strategy.
MakerDAO Votes to Bring Another Commercial Bank Into Its Ecosystem
MakerDAO is voting on adding a commercial bank.
Banks Holding Cryptocurrencies Face Strict New Regulations in European Parliament
The European Parliament must approve a new crypto exposure policy for banks.
Silvergate Capital Corp. is the second-most-shorted stock
Silvergate Capital Corp., a crypto bank, has seen its shares fall 87% in the last year, but speculators believe it has further downside.