The subsidiaries of some of the largest Chinese banking institutions, including the Bank of Communications, the Bank of China, and Shanghai Pudong Development Bank, have reportedly either started offering their services to cryptocurrency businesses based in Hong Kong or reached out to them. The special administrative region has recently emerged as a digital asset hub,...Read More
Nearly 3 weeks after SVB unceremoniously collapsed, it seems the U.S. authorities have finally found a buyer to take over and revive the bank. SVB, the bank that powered much of the startup culture ever-present in the Bay Area and beyond, collapsed following a bank run once it became apparent that trouble was brewing for...Read More
Shares in Deutsche Bank – Germany’s largest lender – began to crash on Friday as financial industry fears continue to spread following a string of global bank failures this month. Meanwhile, the cost of default insurance on the bank’s potential collapse has risen to four-year highs. Is Deutsche Bank Next? Deutsche Bank (DBK) shares fell...Read More
Treasury Secretary Janet Yellen suggested that her department might be willing to further backstop bank deposits if needed, only one day after seemingly ruling out the possibility. Her comments were followed by brief fluctuations in bank stocks, which then continued their downward daily trend. Are Deposits Backstopped or Not? In her prepared testimony before the...Read More
The banking sector could potentially undergo a much-needed revamp, but until then, investors appear to be scrambling for a safety net. As the traditional financial world is rocked by the Credit Suisse chaos and the failure of a series of US banks, investors have flocked to the largest stablecoin, Tether (USDT). The turmoil has once...Read More
The US-based cryptocurrency exchange – Coinbase – reportedly offered a line of credit worth $3 billion to Circle to help it fix its financial cracks after the collapse of Silicon Valley Bank. The stablecoin-issuer revealed a whopping $3.3 billion exposure to SVB, which negatively affected the price of USDC. The asset plunged way below the...Read More
Bill Ackman – an American billionaire investor and Founder of Pershing Square Capital – thinks the US Federal Reserve should temporarily halt its policy to stabilize the local banking system and prevent contagion. Tesla’s CEO and one of the world’s richest people – Elon Musk – urged the central bank to drop the interest rates...Read More
A recent report by David Duong, the head of institutional research for leading American crypto exchange Coinbase, suggests that crypto is the solution to the point of failure in the existing financial system. The researcher opined that the recent U.S. banking turmoil has caused more people to see and appreciate the value proposition of having...Read More
Following an unsuccessful first attempt by the FDIC to find a buyer for Signature Bank, the latter placed in receivership by the fiscal authority will be bought out by Flagsta Bank – a subsidiary of New York Community Bancorp, Inc. Today, we entered into an agreement with a subsidiary of New York Community Bancorp, Inc.,...Read More
With the largest crypto-supportive banks in the U.S. crumbling at the seams, industry firms appear to be retreating to Switzerland for a financial lifeline. Crypto-focused banks in the region are reporting higher traffic after Silvergate, Signature Bank, and Silicon Valley Bank (SVB) all effectively failed over the past two weeks. Where to Crypto Firms Go?...Read More
Balaji Srinivasan, a venture capitalist and former CTO of Coinbase, claimed that the US economy would enter a phase of hyperinflation in 90 days, catapulting BTC to $ 1 million. Balaji, whose crypto venture Earn.com was acquired by Coinbase in 2019, also offered to pay $1 million in BTC to the best 1,000 tweets that...Read More
Silicon Valley Bank (SVB) was the backbone of many startups and venture capital funds around the world. Its collapse signifies the biggest banking failure since the 2008 financial crisis. While the crypto market has largely been spared from an adverse effect, the same cannot be said for the non-fungible token (NFT) space. According to the...Read More
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
