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More to the point, Silvergate was one of exactly two banks serving crypto companies in the US. The other, Signature Bank, is also under a lot of regulatory pre

More to the point, Silvergate was one of exactly two banks serving crypto companies in the US. The other, Signature Bank, is also under a lot of regulatory pressure and it has already cut off eg. Binance and Kraken.

yieldcrv 4y ago
There will be other banks and onramps. There was a time before those two banks. And there are many more institutions open to the business now.
- shanusmagnus 4y ago
  What about recent events would suggest more institutions wanting to get a piece of this action? I'm not being snarky, I'm trying to figure out where banking is going to come from now. Cobbled together small players, is that what it looks like?
  - yieldcrv 4y ago
    Plenty of banks want billions of dollars of business. Smaller banks jump at 100 million of deposits here and there for some niche market. The properly run crypto organizations are still banked fine, USDC - a stablecoin that isn't considered controversial - has $40bn on deposit at BNY Mellon. There are also many financial institutions under state charters and other concoctions that are or seek to operate better for the crypto industry. And crypto organizations have undergone more serious stress tests and banking isolation before. Silvergate's stress came from holding normal super boring bonds and needing to liquidate those, it needed to liquidate because of the mismanaged crypto organizations, but its ability to liquidate came from its own portfolio choices during a coincidental macroeconomic environment and not crypto.
- lmm 4y ago
  > And there are many more institutions open to the business now. Is that really true? I got the impression the cryptocurrency industry was shrinking these days, with lots of companies that had previously announced involvement now exiting.
- orangepurple 4y ago
  Not in the United States. Too much regulatory pressure right now.

yieldcrv 4y ago

There will be other banks and onramps. There was a time before those two banks. And there are many more institutions open to the business now.

shanusmagnus 4y ago
What about recent events would suggest more institutions wanting to get a piece of this action? I'm not being snarky, I'm trying to figure out where banking is going to come from now. Cobbled together small players, is that what it looks like?
- yieldcrv 4y ago
  Plenty of banks want billions of dollars of business. Smaller banks jump at 100 million of deposits here and there for some niche market. The properly run crypto organizations are still banked fine, USDC - a stablecoin that isn't considered controversial - has $40bn on deposit at BNY Mellon. There are also many financial institutions under state charters and other concoctions that are or seek to operate better for the crypto industry. And crypto organizations have undergone more serious stress tests and banking isolation before. Silvergate's stress came from holding normal super boring bonds and needing to liquidate those, it needed to liquidate because of the mismanaged crypto organizations, but its ability to liquidate came from its own portfolio choices during a coincidental macroeconomic environment and not crypto.
lmm 4y ago
> And there are many more institutions open to the business now. Is that really true? I got the impression the cryptocurrency industry was shrinking these days, with lots of companies that had previously announced involvement now exiting.
orangepurple 4y ago
Not in the United States. Too much regulatory pressure right now.