Following the collapse of Silvergate bank – one of the two main banks providing financial services to crypto platforms – former clients began pivoting to competitor Signature, only for the latter to be seized by U.S. authorities, citing significant liquidity issues. Significant Crypto Exposure Faced with a public lack of trust in the banking sector,...Read More
Companies willing to acquire the troubled Signature Bank will reportedly have to give up its cryptocurrency business. Those interested in purchasing the financial institution or Silicon Valley Bank (SVB) can submit bids by March 17. Both entities, which acted as main lenders for numerous crypto organizations, revealed operational difficulties earlier this week, prompting American regulators...Read More
A consortium of 11 major U.S. banks has agreed to invest $30 billion into First Republic Bank – a regional US bank that showed signs of destabilization this week following Silicon Valley Bank (SVB)’s collapse. The uninsured deposits come from Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New...Read More
On March 14, the bank Anchorage Digital announced the layoff of 20% of its workers due to the crypto winter and regulatory uncertainty in the US. According to the official statement, the departure of 75 of its employees (approximately 20% of its team) is necessary to focus its resources on other essential processes. This is...Read More
Credit Suisse shares plummeted to another all-time low of just 1.65 CHF ($1.79) on Wednesday after its largest shareholder – Saudi National Bank (SNB) – said it would not be able to purchase more shares of the company. The 30% drop has been coupled with widespread fear that Credit Suisse could be on the brink...Read More
Coinbase is ramping up its expansion effort, with Singapore being the first stop. As part of its ambitious plan, the crypto exchange has announced forging a strategic banking partnership with Standard Chartered in the city-state to provide its users with an option to move funds between any lender and Coinbase. The news comes amidst the...Read More
Cardano’s Founder – Charles Hoskinskon – believes the cryptocurrency industry should differentiate itself from the “unstable and volatile” banking sector. Three of America’s leading financial institutions – Silvergate Capital, Silicon Valley Bank, and Signature Bank – were shut down by regulators earlier this month, propelling severe losses for numerous crypto-focused firms. In a recent tweet,...Read More
Both the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) are reportedly investigating the now-collapsed Silicon Valley Bank (SVB) after depositors to the bank were bailed out by regulators on Sunday. The separate investigations will both examine the stock sales of SVB’s executives moments before the bank collapsed. The agencies’ investigations are still...Read More
Huobi had reportedly withdrawn all its assets from Signature and Silvergate Bank prior to their demise. However, numerous other platforms and crypto-related firms got burned from their existing exposure to the aforementioned banks, including Coinbase and Paxos. Huobi disclosed to Reuters that its customers’ funds remain unaffected by the recent banking crisis in the USA since...Read More
Barney Frank – a board member for Signature Bank and former member of U.S. Congress – believes the government had “no objective reason” to force his company into receivership on Friday. Rather, he interpreted the action as an attempt by regulators to “send a very strong anti-crypto message,” throughout the country. Why Close Down Signature?...Read More
While the Fed may have bailed out Silicon Valley Bank (SVB)’s depositors on Monday, the market’s uncertainty surrounding the entire banking sector still loom large. Trading for multiple banking organizations was halted on Monday due to share price volatility, much like SVB last Friday. According to Nasdaq Trader, trading for Charles Schwab – a multinational...Read More
The unprecedented injection of liquidity into the market from the Federal Reserve during that period was an attempt to stimulate an ailing economy. But before that, crypto, which closely tracked the stock market’s movements, went into a downward spiral soon after. Bitcoin crashed from $8,000 to $3,750 in a matter of hours. It was the...Read More
HSBC Holdings – the largest banking institution in the United Kingdom – will reportedly purchase Silicon Valley Bank UK Limited (SVB UK) for £1 ($1.20). Silicon Valley Bank made the headlines last week, revealing liquidity issues and balance sheet holes. This triggered huge panic among venture capital firms, who reportedly advised investors to withdraw their...Read More
Yet another crypto-friendly bank has been forced to shut its doors: Signature Bank – the bank numerous crypto firms retreated to after Silvergate revealed operational difficulties earlier this month. As with Silicon Valley Bank (SVB), the U.S. government has agreed to fully bail out the firm’s depositors as part of a “systemic risk exception.” In...Read More
The host of CNBC’s Mad Money has been often grilled on social media for advising people to invest in assets that turn unprofitable or vice-versa. His latest example is the notorious Silicon Valley Bank, which became a victim of a bank run, and ultimately collapsed on Friday. Cramer Said Buy SVB Stock “This company is...Read More
Following the second-largest bank collapse in American history on Friday, market participants are worried about which firms might be caught up in the contagion surrounding Silicon Valley Bank (SVB). Here’s what venture capitalists and major crypto executives had to say about the failure – and why the crypto community is keeping an eye on Circle...Read More
The embattled Silicon Valley Bank (SVB) has officially been closed down by the California Department of Financial Protection and Innovation, making for the second-largest bank failure in U.S. history. The Federal Deposit Insurance Corporation (FDIC) has been appointed as its receiver and will ensure all insured depositors gain full access to their funds by Monday,...Read More
Silicon Valley Bank (SIVB) is reportedly seeking external acquisition after its efforts to raise over $2 billion in capital have failed. Shares in the bank were down 62% in pre-market trading on Friday, for which trading has now been halted. According to CNBC’s David Faber, Silicon Valley Bank has “hired advisors to seek a sale,”...Read More
HSBC, Nationwide Building Society, and other banking heavyweights in the UK are reportedly implementing a new set of restricting rules aimed at purchasing cryptocurrency. The move comes amid a chaotic year for the crypto industry, which witnessed the failure of several industry giants. Same Old Song According to a Bloomberg coverage, the biggest banking institution...Read More
A recent report by the Bank of International Settlements (BIS) revealed that the crypto industry lost over $650 billion after two major scandals that rocked the market last year. The report titled “Crypto Shocks and Retail Losses” explained investors’ trading behavior during and after the scandals, their profits and losses, and the effects of the...Read More
DZ Bank – the second-largest German bank by assets – is all set to offer digital asset custody services. The BaFin-regulated financial institution and custody provider has joined forces with Swiss firm Metaco and orchestration platform Harmonize for its upcoming digital currencies to its institutional clients offering. According to the official press release, Harmonize is...Read More
The EU is working hard to push through tough capital rules for banks that hold crypto assets. The global Basel Committee of banking regulators from the world’s leading financial centers has set a January 2025 deadline. The rules are for capital requirements for banks that have exposure to cryptocurrencies and stablecoins. According to a Feb....Read More
Lee Reiners, policy director at the Duke Financial Economics Center, recommended that banking agenices restrict the crypto industry from accessing the banking system while testifying to the Senate Banking Committee on Tuesday. The professor claimed that crypto has produced nothing of benefit during the 14 years since Bitcoin’s whitepaper was published. What to Do About...Read More
Michael Demissie, the head of digital assets at Wall Street powerhouse Bank of New York Mellon (BNY Mellon), has disclosed that investors are still very interested in the digital asset space amid the bear market. According to a Reuters report, Demissie believes cryptocurrencies are here to stay as investors have not lost interest in the...Read More
Crypto markets have been showing strong signs of recovery – but not everyone is convinced, and financial institutions are understandably on their guard. According to the Federal Deposit Insurance Corporation (FDIC), offering crypto products and services should be considered a high-risk activity by traditional banks. “Business models that are concentrated in crypto-asset-related activities or have...Read More
American banking watchdogs warned domestic financial institutions that delving into the world of crypto could carry various risks, such as fraud. The warning comes as a result of a catalytic 2022, which saw the demise of multiple cryptocurrency giants, including FTX, Terraform Labs, Three Arrows Capital, Celsius Network, and more. The collapse of those firms...Read More
In a report on Jan. 2, the international non-governmental and lobbying organization said that crypto will continue to be an integral part of the “modern economic toolkit.” The WEF acknowledged the calamitous previous year, labeling it as “terrible,” with more than $2 trillion getting wiped out. Additionally, the Switzerland-based political and economic forum fingered regulators...Read More
The world’s largest financial watchdog, the FSB, plans to roll out regulatory guidelines for crypto in 2023. According to the Financial Times, the FSB intends to set out a timeline for global regulators in the coming months. It will enable them to implement its first recommendations on global crypto regulation, it added. The move is...Read More
The latest bank to clamp down on crypto in the UK is Santander. Over the weekend, it was reported that the retail bank is planning to block real-time payments to crypto exchanges in 2023. The bank is claiming to be protecting customers from scams. The crypto blockade will include in-branch, mobile, and internet banking for...Read More
The Berlin-based neobank – N26 – established a cryptocurrency service that will enable customers to buy and sell 100 cryptocurrencies. The largest fintech bank in Latin America – Nubank – also hopped on the bandwagon, launching its own cryptocurrency in Brazil. Interestingly, Berkshire Hathaway – the conglomerate holding company spearheaded by the famed investor and...Read More
