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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.
Footnotes
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