In the past week, three major banks that were considered important pillars for the crypto industry closed their doors. This crypto news has caused a lot of discussion about what the impact will be on crypto companies and the liquidity of the crypto market.
Some people worry that the closure of these banks will lead to a shortage of banking partners for crypto companies, while others believe alternatives are already out there. In this article, we will take a closer look at the recent closure of the three banks and the possible consequences for the crypto industry.
Crypto in trouble due to bank closures
Three major crypto-friendly banks closed in less than a week, making it harder for crypto companies to find traditional banking partners. The closure of the banks – Signature Bank, Silicon Valley Bank and Silvergate Bank – is seen as a blow to the crypto industry, as these banks were major players.
Crypto investor Scott Melker and others fear that the closure of these banks will leave the industry without banking options and crypto’s liquidity may be hampered.
“Silvergate, Silicon Valley and Signature are all closed.
Customers are compensated, but there is really no one left to bank crypto companies in the US.”
Silvergate, Silicon Valley and Signature all shuttered.
Depositors will be made whole, but there’s basically nobody left to bank crypto companies in the US.
— The Wolf Of All Streets (@scottmelker) March 12, 2023
“Crypto is not welcome here”
While some believe the closing of the three banks will create room for other banks to step up, Messari’s CEO warns about USDC’s future, stating that the industry must fight to protect and promote it.
“Crypto’s banking options have effectively closed in less than a week. Next up, USDC.
The message from DC is clear: crypto is not welcome here.”
Crypto’s banking rails have been effectively shuttered in less than a week. Next up, USDC.
The message from DC is clear: crypto is not welcome here.
— Ryan Selkis 🥷 (@twobitidiot) March 12, 2023
However, Circle, the issuer of USDC, has confirmed that its reserves are safe and new banking partners are ready. While the closure of the three banks is a blow to the crypto industry, there are still opportunities for companies to find banking partners and mitigate the impact of the closure.