Skip to content

Banking Crisis Pushes Crypto Firms to Seek Asset Managers

Crypto firms are seeking support from TradFi institutions following the collapse of Silicon Valley Bank, Signature Bank, and Silvergate.

Alice Pasqual/ Unsplash

As a result of the recent failure of numerous crypto-friendly US banks, a growing number of organisations in the digital-asset industry are turning to asset managers like Fidelity Investments to put their capital in things like Treasuries.

The shift away from US banks was the theme over the past few days after the collapse of Silicon Valley Bank, Signature Bank, and Silvergate.

That prompted crypto conglomerate Digital Currency Group (DCG) to seek new banking partners for portfolio firms.

The US banking crisis has left crypto enterprises and tech startups stranded and searching for new banking partners, even as Santander, HSBC, and Deutsche Bank are still eager to engage with these businesses.

Read more: Asia the Likely Winner as US Banks Collapse

Concerns over the survival of Credit Suisse Group have ratcheted up worldwide as financial markets continue to reel from last week's bank-run-fueled bankruptcy of Silicon Valley Bank and the fears of contagion which hurt European banking stocks across the board on Wednesday.

Besides, stock prices for many lenders have been in free-fall, posing potential risks.

This post is for subscribers only


Already have an account? Sign In