Crypto firms may turn to ‘shadow banks’ following major collapses — Molly White
In the wake of three major banks with ties to crypto firms collapsing, software engineer Molly White believes companies now looking at banking options may have to face “shadier” solutions.Speaking on March 14 at a South by Southwest (SXSW) panel in Austin, Texas on ‘Popping the Web3 Bubble’, White opined that crypto firms’ options following the collapse of the crypto-friendly Signature and Silvergate banks may drive them metaphorically underground.
White compared the situation to that in 2017 and 2018, when crypto projects had “trouble accessing banking” with less knowledge and acceptance from institutions.“There were only a handful of U.S.
banks that were really game to take crypto clients,” said White. “With Signature and Silvergate both out of the picture, I think that’s going to be very impactful on the crypto industry [which] still really needs access to traditional finance and to U.S.
banking rails.”She added:Many in and out of the space have claimed the New York Department of Financial Services’ shutdown of Signature Bank was an overreach from authorities due to the firm’s connection to crypto companies.
Read more on cointelegraph.com
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