| 6.3.2023–12.3.2023 |
SVB’s Collapse Causes Turmoil in Cryptocurrency Market — Silicon Valley Bank, a California-based tech bank, has collapsed, causing a domino effect in the crypto industry and raising concerns among small businesses, venture capitalists, and depositors. Regulators in the US and UK have taken action to deal with the collapse, and the Bank of London has made a formal bid for the UK branch of SVB. US President Joe Biden is also reportedly preparing “material action” in response. The Federal Reserve Board has created a $25 billion Bank Term Funding Program to backstop banks and offer loans to eligible depository institutions facing liquidity issues.
New York Regulators Close Down Signature Bank, Citing Systemic Risk — New York-based Signature Bank, which is known to serve a number of crypto firms, has been closed down by state regulators, citing “systemic risk”. The New York regulator, the Department of Financial Services (NYDFS), has taken possession of Signature Bank and appointed the U.S. Federal Deposit Insurance Corporation to handle the insurance process, with the Federal Reserve backstopping all depositors of the bank. Shareholders and certain unsecured debt holders will not be protected, and the senior management has been removed.
Ripple CEO reassures financial position after SVB collapse — Ripple CEO, Brad Garlinghouse, has reassured his followers that the company’s exposure to Silicon Valley Bank (SVB) will not impact its daily operations. While he did not disclose how much cash the company had in SVB, he stated that Ripple is in a “strong financial position” and holds a majority of its USD with other bank partners. Garlinghouse’s tweet was published ahead of the Federal Reserve’s announcement that it had established a $25bn funding program to help banks during times of financial stress, with all depositors of SVB having access to their money starting on 13 March.
Don’t miss out on more Telegram “Ask Me Anything” sessions like these, join our Telegram community here. Arvan from Operations at Bitrue joined Ayush Garg, Marketing and Operations Lead of Unilend, in a conversation entailing Unilend services and its listing on Bitrue.
If you missed it, listen to Bitrue x Push Protocol’s “Ask Me Anything” Session on Twitter Space here. Bitrue’s PR Manager, Lily, had a chat with CEO of Push Protocol, Harsh Rajat, discussing why Web3 communication is important and what makes Push Protocol the “Missing Piece”.