The three banks that failed this month — Silicon Valley, Signature and Silvergate — all had their feet in the crypto pool. Let’s do the numbers on how digital assets and cryptocurrencies could be impacted by the banks’ collapses.
Signature Bank and Silvergate allowed crypto customers to make instant deposits and withdrawals “outside of banking hours” using 24/7 blockchain payment networks. Forbes writer Emily Mason reported that the networks moved more than $2 trillion to and from digital asset markets since 2019.
Before these systems were launched, crypto companies had to use bank transfers or the U.S Treasury’s Automated Clearing House to process payments, which were more costly, slower to clear and could occur only during banking hours.
Circle Internet Financial, which operates the second-largest stablecoin, USD Coin, had that much tied up in Silicon Valley Bank. The stablecoin, which is supposed to keep a constant value of $1, fell to 87 cents the day after the bank failed.
Co-host and correspondent Kimberly Adams shared this link internally this week. It’s for a “streaming optimizer” tool made by Axios to help you save money on streaming services by paying only for the shows you watch.
This newsletter was written by Ellen Rolfes.
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