Cointelegraph breaks down the key events that led to the downfall of Silvergate, SVB and Signature Bank and explains what it all could mean for crypto.
The rapid collapse of Silvergate, Silicon Valley Bank (SVB) and Signature Bank last week highlighted the fragility of the traditional banking system while stripping the crypto industry of major fiat platforms in the United States.
Most observers agree that the decline of SVB, like Silvergate, is largely the result of poor market conditions and poor risk management.
Closing the signature is more controversial. According to many sources, the bank is not facing bankruptcy and has largely balanced the outflow of its capital when US regulators decide to take it over. Many in the crypto industry see it as a political decision aimed at pushing crypto out of the United States.
Silvergate and Signature are two leading financial institutions that provide banking services to crypto companies in the United States. After their closure, it will be very difficult for crypto companies to interact with the dollar-based financial system.
Meanwhile, the collapse of SVB appears to have sent ripples throughout the global banking industry. Credit Suisse, Switzerland’s second largest financial institution, is going through a major crisis that requires the Swiss central bank to step into a $54 billion bailout.
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