The collapse of three top US crypto-friendly banks have stirred reactions in the crypto community as some top players like Coinbase consider adding banking feature to their services. One of the banks to fall into the death trap is
Then on March 12, the Signature bank closed shop, further exacerbating the issues. Amid the fiasco, Coinbase CEO Brian Armstrong
However,
More so, the US Federal Reserve’s newly
Due to the recent crisis, Coinbase Chief Brain Amstrong tweeted on March 13 in response to a crypto community member’s
Meanwhile, Coinbase held around $240 million at Signature Bank. However, it expects to recover its funds from the troubled bank.
The recent collapse of the top crypto-friendly banks, Silvergate, Signature, and Silicon Valley Bank, stirred bearish sentiments among the community. The troubled banks were among the few that supported cryptocurrency services.
The
Silicon Valley Bank’s collapse represents the second-largest financial failure of a retail bank, in the US, since 2008. Signature Bank, another crypto-friendly bank, met a similar demise. The incident caused the New York Department of Financial Services to take over the bank to avoid further runs as customers trooped to withdraw their funds.
The ripple effect from the banks’ collapse has begun spreading across the crypto industry, with some stablecoin dancing to the depressing tune. USDC felt the impact, with a 10% price decline on Saturday, March 12, shortly after its issuer, Circle, revealed its reserves stuck on SVB.
On March 9, Circle tried removing its funds from SVB as the bank was about to shut its operations. But on March 11, the stablecoin issuer
Featured Image from Pixabay and chart from Tradingview.com