Crypto's banking problem: 5 industry experts share market outlook

Crypto is facing a banking problem, with three of the industry's crucial financial partners shuttering in the past week.

Silvergate, which served crypto clients like Coinbase and Kraken, also closed after a prolonged drop in customer deposits that began last year, along with a slew of other financial issues. And on Sunday, Signature was seized by regulators after concerns that the banking crisis would spread. Hammer added:"However, with significant macroeconomic changes in the financial world, the delicate balance that existed seems to have spun out of control, resulting in massive failures in [centralized finance] and now also legacy financial institutions."Both Silvergate and Signature offered real-time payment platforms for clients, shoring up liquidity for some of crypto's biggest players.

"CBDCs could provide a more secure and stable means of entering the crypto market by allowing investors to directly purchase and hold CBDCs, without the need for intermediaries such as banks, which in turn could help to mitigate the impact of the bankruptcy of crypto-friendly banks," Nguyen said. And a blockchain gaming exec said the relationship between traditional banks and crypto has also taken another massive hit, which could impact the US lead on crypto innovation as well.

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‘Nobody left to bank crypto companies’ — Crypto Twitter reactsSilicon Valley Bank's (SVB) sudden collapse and the closure of crypto-friendly bank Signature Bank have prompted the crypto community to give their 2 cents on what it could all mean for the future. Not surprising given the environment right now, but was a traditional “bank” really needed for cryptocurrency? I don’t know much about what they offered, but it feels like they were trying to hang onto old, familiar models. self-custody, brokerage accounts
Source: Cointelegraph - 🏆 562. / 51 Read more »

Crypto industry may escape lasting damage from Silvergate liquidationSome U.S. crypto firms may need to find new banks, while traditional banks may be more hesitant to accept crypto-related deposits. That’s a feature, not a bug. Banking troubles are rocking all markets. What the heck are you talking about, banking trouble is bullish for crypto, Bitcoin was created exactly for this reason, cointelegraph is totally disconnected with reality.
Source: Cointelegraph - 🏆 562. / 51 Read more »