March 15, 2023, 9:26AM EDT
• 9 min read

The Regional Bank Crisis and its Repercussions on Crypto

Quick Take

  • Three of the largest crypto-friendly banks, Silvergate, SVB, and Signature, have ceased operating recently.
  • Based on statements of concerned financial authorities, the funds to make the depositors whole will come from fees that banks pay into the FDIC’s deposit insurance fund.
  • Panic caused by Silicon Valley Bank’s insolvency, coupled with Silvergate Bank and Signature Bank’s liquidations, led to the USDC stablecoin losing its peg to the US dollar for a small period.
  • There is a likelihood that Crypto markets rallied as a reaction to the misfortunes of traditional finance and speculations of the Fed halting contractionary monetary policies.


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