{"id":75423,"date":"2023-03-13T12:56:14","date_gmt":"2023-03-13T10:56:14","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=75423"},"modified":"2025-09-10T11:37:39","modified_gmt":"2025-09-10T08:37:39","slug":"crypto-friendly-banks-collapse-raises-concerns-in-the-crypto-community","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/crypto-friendly-banks-collapse-raises-concerns-in-the-crypto-community\/","title":{"rendered":"Crypto-friendly banks&#8217; collapse raises concerns in the crypto community"},"content":{"rendered":"<p>Problems at three banks \u2014 <a href=\"https:\/\/u1f987.com\/en\/news\/silvergate-to-liquidate-silvergate-bank\">Silvergate Bank<\/a>, <a href=\"https:\/\/u1f987.com\/en\/news\/us-rescue-saves-svb-and-signature-bank-depositors-stablecoins-narrow-the-depegging\">Signature Bank<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/venture-capital-investors-distance-themselves-from-silicon-valley-bank-amid-liquidity-concerns\">Silicon Valley Bank (SVB)<\/a> \u2014 have raised concerns in the crypto community about the fate of companies tied to the industry.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Silvergate, Silicon Valley and Signature all shuttered. <\/p>\n<p>Depositors will be made whole, but there\u2019s basically nobody left to bank crypto companies in the US.<\/p>\n<p>\u2014 The Wolf Of All Streets (@scottmelker) <a href=\"https:\/\/twitter.com\/scottmelker\/status\/1635051020010274816?ref_src=twsrc%5Etfw\">March 12, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cDepositors will be made whole, but there\u2019s basically nobody left to bank crypto companies in the US,\u201d wrote The Wolf Of All Streets host Scott Melker.<\/p>\n<\/blockquote>\n<p>Meltem Demirors, chief strategy officer at CoinShares, expressed similar concerns. She stressed that \u201ccrypto in the US has basically lost all banks in a week.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">and just like that, crypto in america has been unbanked<\/p>\n<p>Silvergate. Silicon Valley Bank. Signature. <\/p>\n<p>in one week <a href=\"https:\/\/t.co\/nWLDxdOAAA\">pic.twitter.com\/nWLDxdOAAA<\/a><\/p>\n<p>\u2014 Meltem Demirors (@Melt_Dem) <a href=\"https:\/\/twitter.com\/Melt_Dem\/status\/1635049201364250624?ref_src=twsrc%5Etfw\">March 12, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Crypto investor and blogger Lark Davis noted that Signature Bank was \u201cthe last big bank\u201d that served companies tied to digital assets.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Umm\u2026 so they shut down Signature bank\u2026 <\/p>\n<p>Wasn\u2019t that like one of the last big banks working with <a href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&#038;ref_src=twsrc%5Etfw\">#crypto<\/a> companies? <\/p>\n<p>Guys? Guys\u2026<\/p>\n<p>\u2014 Lark Davis (@TheCryptoLark) <a href=\"https:\/\/twitter.com\/TheCryptoLark\/status\/1635077159126716418?ref_src=twsrc%5Etfw\">March 13, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Against the backdrop of turmoil in the U.S. banking sector, Castle Island Ventures cofounder Nick Carter forecast a potential liquidity squeeze in the market. In an interview with CNBC he said that the payment rails <span data-descr=\"Silvergate Exchange Network\" class=\"old_tooltip\">SEN<\/span> and Signet had been a key source of fiat for many firms.<\/p>\n<p>Jake Chervinsky, Head of Policy at the Blockchain Association, noted that the closures of financial institutions create \u201ca huge gap\u201d in the crypto market.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">The closures of Silvergate, SVB, and Signature create a huge gap in the market for crypto-friendly banking.<\/p>\n<p>There are many banks that can seize this opportunity without taking on the same risks as these three.<\/p>\n<p>The question is if banking regulators will try to stand in the way.<\/p>\n<p>\u2014 Jake Chervinsky (@jchervinsky) <a href=\"https:\/\/twitter.com\/jchervinsky\/status\/1635062063583363072?ref_src=twsrc%5Etfw\">March 12, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThere are many banks that can take advantage of this opportunity without taking on the same risks as these three. The question is whether regulators will try to stand in their way,\u201d he added.<\/p>\n<\/blockquote>\n<p>Mike Bucella, managing partner at BlockTower Capital, told CNBC that many in the industry are already moving to Mercury Bank and Axos Bank.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIn the near term, crypto\u2011banking in North America will be a tough test. Yet there is a long list of candidate banks that could fill this gap,\u201d he explained.<\/p>\n<\/blockquote>\n<p>Commenting on the SVB situation, Changpeng Zhao, CEO of Binance, weighed in but later deleted his tweet. According to a screenshot, he questioned whether rescue of troubled financial institutions was necessary\u2014arguing such help reduces the incentive to manage risk.<\/p>\n<p>Messari CEO Ryan Selkis also expressed concern about the future of the stablecoin USDC.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">The entire industry should be fighting like hell to protect and promote USDC from here on out. It\u2019s the last stand for crypto in the US.<\/p>\n<p>\u2014 Ryan Selkis ? (@twobitidiot) <a href=\"https:\/\/twitter.com\/twobitidiot\/status\/1635049386643427330?ref_src=twsrc%5Etfw\">March 12, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cFrom this moment, the entire industry must fight hard to protect and promote USDC. This is the last stand for crypto in the United States,\u201d he noted.<\/p>\n<\/blockquote>\n<p>Peter Schiff, chief executive of Euro Pacific Capital, argued that the <span data-descr=\"U.S. Federal Reserve System\" class=\"old_tooltip\">\u0424\u0420\u0421<\/span> recognised how fragile the economy was and that the SVB collapse would trigger a financial crisis.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">The <a href=\"https:\/\/twitter.com\/hashtag\/Fed?src=hash&#038;ref_src=twsrc%5Etfw\">#Fed<\/a> knows the <a href=\"https:\/\/twitter.com\/hashtag\/economy?src=hash&#038;ref_src=twsrc%5Etfw\">#economy<\/a> is so fragile that the failure of <a href=\"https:\/\/twitter.com\/hashtag\/SVB?src=hash&#038;ref_src=twsrc%5Etfw\">#SVB<\/a> would cause a financial crisis. So it abandoned its <a href=\"https:\/\/twitter.com\/hashtag\/inflation?src=hash&#038;ref_src=twsrc%5Etfw\">#inflation<\/a> fight and backstopped the banks instead. That proves <a href=\"https:\/\/twitter.com\/hashtag\/Powell?src=hash&#038;ref_src=twsrc%5Etfw\">#Powell<\/a> was lying about both the strength of the U.S. economy and his resolve to fight inflation.<\/p>\n<p>\u2014 Peter Schiff (@PeterSchiff) <a href=\"https:\/\/twitter.com\/PeterSchiff\/status\/1635122488534519808?ref_src=twsrc%5Etfw\">March 13, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis proves that [Powell] lied about both the strength of the U.S. economy and his commitment to fighting inflation,\u201d Schiff stressed.<\/p>\n<\/blockquote>\n<p>Against the backdrop of SVB\u2019s collapse, the stablecoin USDC and algorithmic stablecoins DAI and FRAX lost their peg to the dollar. On March 13, the USD Coin issuer Circle reassured that it had addressed the issues with custodial banking for the asset.<\/p>\n<p>Earlier, Ripple CEO Brad Garlinghouse noted the company\u2019s financial stability despite Silicon Valley Bank\u2019s troubles.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Problems at three banks\u2014Silvergate Bank, Signature Bank, and Silicon Valley Bank (SVB)\u2014have raised concerns in the crypto community about the fate of industry-related companies.<\/p>\n","protected":false},"author":1,"featured_media":75424,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1229,1269,1138],"class_list":["post-75423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-banks-and-fintech","tag-cryptocurrencies","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=75423"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75423\/revisions"}],"predecessor-version":[{"id":75425,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75423\/revisions\/75425"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/75424"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=75423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=75423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=75423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}