The closure of three major crypto-friendly banks in the US, Signature Bank, Silicon Valley Bank, and Silvergate Bank, has sent shockwaves across the digital asset industry. According to some in the crypto community, this could pose a significant challenge for crypto companies in accessing traditional banking partners.
On March 12, the Federal Reserve announced the closure of Signature Bank, citing “systemic risk” as the reason for the bank’s closure. It came only days after the closure of Silicon Valley Bank, which was ordered to shut down on March 10. A week prior, Silvergate Bank, another crypto-friendly bank, announced that it would close its doors and voluntarily liquidate on March 8.
At least two of these banks were seen as important banking pillars for the crypto industry. Signature Bank had $88.6 billion in deposits as of Dec. 31, according to insurance documents. The Silvergate Exchange Network (SEN) and Signature Bank’s “Signet” were real-time payment platforms that…