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

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Crypto just lost 3 of its most important banking partners in a week. Here's what experts say the impact will be on the industry.

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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