Most significant among the problems listed was the collapse of Silicon Valley Bank. The bank had $209 billion in assets, making the collapse of SVB the second largest banking collapse in US history.

It was also revealed over the weekend that $3.3 billion, or 8 per cent of the reserves to secure the USDC Stablecoin from Circle were held just at Silicon Valley Bank. However, in the end, the government decided to help SVB customers by providing access to their deposit money. Well Circle transferred 3.3 billion to accounts of other big banks.

As a result, the rate of USDC has fallen to 87 cents, which was a historical low. Now the value of the Stablecoin has almost completely recovered.

Why cryptocurrency banks are closing down

According to Cointelegraph sources, Signature had $88.6 billion in customer deposits. While it is still difficult to ascertain exactly what the losses from the organisation’s collapse are, one could well be preparing now for another cryptocurrency company to announce the loss of some of its reserves following the bank’s collapse.

Popular cryptocurrency enthusiast Scott Melker has stated that Signature’s problems will be a serious test for the digital asset sector. Here’s his quote to that effect.

Silvergate, Signature and Silicon Valley Bank have all three closed down. Customers will get their funds back, but it looks like there are no more banks left to serve big business in crypto.

In fact, this is not the case. As The Block's spokesman Larry Cermak has clarified, banking giants like JP Morgan and BNY Mellon are willing to work with large cryptocurrency businesses. For smaller companies, there are also plenty of financial institutions willing to collaborate.

Generally speaking, “servicing business” in this context is processing large transactions for cryptocurrency companies from outside the industry. That is, the aforementioned banks have been involved in, among other things, supporting the inflow of capital from investors, earning from this process. They also had established relationships with cryptocurrency companies, so at least in the short term, some popular centralised crypto projects may have problems with fiat transactions.

Will US banking regulators give further development of the sphere the green light? That’s the question that crypto-enthusiast Jake Czerwinski asked on Twitter. Here’s his rejoinder.

The closure of Silvergate, SVB and Signature creates a huge gap in the banking market. There are plenty of banks that could take advantage of this opportunity without taking the same risks as these three. The question is whether bank regulators will try to get in the way.


This version has reason to exist. The day before, former congressman Barney Frank claimed that Signature Bank had been closed despite the lack of insolvency. Regulators thus allegedly wanted to wipe out major banks that interact with the cryptocurrency industry.


Silvergate Exchange Network (SEN) and Signature’s Signet were payment platforms that allowed commercial customers to make real-time payments in dollars at any time. Their loss could mean “the liquidity of the crypto market will deteriorate somewhat”, says Nick Carter of Castle Island Ventures. Signet and SEN have been key elements in shaping liquidity, he says.

Market liquidity is also deteriorating as digital assets continue to flow away from centralised exchanges. In particular, the day before, Bitcoin’s so-called market depth on trading platforms dropped to its lowest level since May 2022. This figure refers to the number of BTCs that need to be traded to change the cryptocurrency’s value by 2 per cent.

This figure is now at the bottom, indicating a shortage of coins on exchanges. Still, the smaller the cryptocurrencies, the harder it is to make large trades with them.

There are more positive predictions – here’s one from crypto trader yuga.eth.

United Texas Bank, Western Alliance Bank, JP Morgan Chase and Bank of New York Mellon all have cryptocurrencies as clients, so the number of these financial institutions is only likely to grow.

The CEO of research platform Messari, Ryan Selkis, on the other hand, is not so optimistic.

Cryptocurrency banking partners have closed in less than a week. Don’t forget the problems with USDC as well. This is a clear warning for the crypto market from Washington.

Nevertheless, the negative news around banks led to a serious market uptick, well Bitcoin and most altcoins updated their local highs. The reason for that is that the government may now even run the printing press in order to support the economy after the problems in the banking sector. And that would traditionally end with markets rising, because new money in the economy would clearly be invested somewhere.


We believe that the current events will make ordinary people question the credibility of banks. As what happened last week showed, some financial institutions are irresponsible with their clients' money and take far too many risks with it. Therefore, it is possible that after this many people will want to get in touch with digital assets and be responsible for storing them themselves.