Usa county Banks city Silvergate business United States Federal Reserve Usa county Banks city Silvergate

Collapse of Silvergate and Silicon Valley Bank represent a challenge for crypto

Reading now: 655

The collapse of Silicon Valley Bank (SVB) and Silvergate Capital, some of the most crypto-friendly banks in the industry, has forced many crypto firms to hold their breath.

The loss of a significant banking partner for many companies means it will be even harder for them to comply with regulations and offer their services in a way that is consistent with the expectations of the United States Securities and Exchange Commission.In the aftermath of the banks’ collapse, the second-most liquid U.S.-dollar pegged stablecoin, USD Coin (USDC), temporarily lost its peg and fell below $0.87, as its issuer, Circle, admitted that it held $3.3 billion at SVB.

Within the crypto industry, Circle is one of the better-known, “mature” players, so the news understandably shook investors, forcing many to lose their confidence in cryptocurrencies once again.It is obvious that the collapse of SVB and Silvergate has and will continue to challenge the crypto industry as a whole.

In addition to that, it has also created uncertainty as banking partnerships are crucial for the infrastructure that enables crypto companies to operate.This is especially evident with stablecoins like USDC that rely on banking partnerships to ensure their value is pegged to the U.S.

The website is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News