tl;dr
• HSBC wins bid for UK portion of Silicon Valley Bank for 1 pound• Regulators shutting down Signature Bank creates banking problem for crypto companies, including Coinbase with $240M deposited• First Republic could be the next bank to go down, says David Sacks, tech investor and entrepreneur• Binanc...
• HSBC wins bid for UK portion of Silicon Valley Bank for 1 pound
• Regulators shutting down Signature Bank creates banking problem for crypto companies, including Coinbase with $240M deposited
• First Republic could be the next bank to go down, says David Sacks, tech investor and entrepreneur
• Binance CEO identifies risk exposure for fiat-backed stablecoins due to US banking industry and converts remaining $1B for Industry Recovery Initiative to BTC, ETH, and BNB
• USDC regains dollar peg, representing over 13% rise since dip to $0.88 during recent market dip
• Shibarium's testnet launches quietly amidst banking industry turmoil
• Europe's implementation of new crypto regulation while also contemplating their own blockchain shows their dislike for lack of control over crypto
• IMF points out widespread crypto use would impact banks, but bank failures not caused by crypto, but rather unregulated moves
The current banking crisis looms large. Here is what is on my mind today.
1. It looks like HSBC has won the bidding war for the purchase of the UK portion of Silicon Valley Bank, for 1 pound. This means a bank with liquidity will take over and can reasonably absorb a bank run resulting from the collapse. This makes everyone involved whole. That said, I think there are going to be a lot of companies that are going to rethink their management of cash on hand as well as what level of true risk exposure they are willing to take on. Think about it, if a bank if taking your money and giving it to, let's say, BlackRock, why wouldn't you do that yourself? There are services that banks fulfill, but the question is going to be asked just what services are unique to banks?
2. With regulators shutting down Signature Bank, banking problems for crypto companies can grow. The question now is where would all of the crypto companies go to handle banking for them. Signature had already drastically scaled back their exposure to the space ,by limiting everything to $100K+ transactions.
3. It looks like First Republic could be the next bank to go down. Is this the bank tech investor and entrepreneur David Sacks was talking about during his interview with Unherd? He actually said he knows of at least one other bank that could be facing eminent withdrawals from corporation customers.
4. CZ, CEO of Binance says the debacle happening in the US banking industry is proof positive that fiat-backed stablecoins have risk exposure because of the banking industry and identifies the depegging of USDC as further evidence.
5. USDC has regained its dollar peg, while the Cryptosphere recovers from what was a sizable dip. If you were confident enough to buy in when It depegged, you probably made some quick money since it had dipped to as low as $0.88. Not bad, if you had the cojones!
6. While all of this was going on Shibarium's testnet launched without so much as a whisper. With the banking industry under fire, there was no way this was going to be a major headline. Go Shiba Army!
7. I am getting my laugh on as I look at Europe's landmark implementation of the new Market in Crypto Assets (MiCA) regulation and then turning around and contemplating their own blockchain. I am laughing because the move clearly says they don't like crypto as it is now because they can't control it. I think it may be some time before we see it, but I think there is a faceplant being created here.
8. The IMF is trying to say, "I told you so!" to the G-20 saying widespread crypto use would impact banks. Wow! Really? How about the lack of transparency and fair regulation? Nah, wouldn't want to do that. What about banks like Credit Suisse and Deutsche Bank being close to going under because of their shenanigans?