A huge scene was created last week when the US Feds took down three major banks that supported cryptocurrencies.
They were partners with major crypto firms, offering them support, and letting them use the crypto-to-fiat services through their platforms.
The Feds were not ready to let that happen any longer as they claimed that the country’s economy was under a threat.
According to the sources, the Silvergate Bank, the Silicon Valley Bank, and the Signature Bank were on the Feds’ hit list.
Silvergate Announced Liquidation
Turns out, the Silvergate Bank announced its own liquidation drawing the banking firm out of the picture. The Feds no longer had to act against it as it was already down.
The fate of SVB and SIgnature
However, the Silicon Valley Bank was still operating and so was the Signature Bank. The first that the Feds hit was the Silicon Valley Bank. They ceased it and fully shut down its operations.
Then came the Signature Bank which had the same fate and the Feds shut its operations down as well.
The Feds cited the same reasons for both banks supporting high-risk crypto projects and firms. Therefore, it shut down these banks and announced that all of the depositors will have their deposits returned by the US Treasury.
With these banks out of the picture, the crypto communities are concerned about the future of cryptocurrencies.
If the crypto firms can’t keep their connections up with the banks, it can turn out to be very problematic. It may not only prove problematic for the firms but for the investors as well.
More Banks Support Crypto
Despite the takedowns, there are several other banks in the United States that are still supporting the crypto industry. These major banks have very high reputations and respect in the crypto market as well.
They have been operating as banking firms for a while and it may be difficult for the Feds to take them down that easily.
It is a major and one of the oldest banking giants in the United States. It is a multi-national banking solution, which adopt crypto back in November 2020, announcing the launch of Onyx Digital Assets.
From the time of launch until now, Onyx has processed transactions of well over $460 billion.
BNY Mellon adopted cryptocurrencies back in October 2022. It launched its own custody platform for digital currencies, allowing users to hold Ether and Bitcoin.
As of now, $43 billion worth of digital asset funds is under the management of BNY Mellon.
Other banks supporting the crypto industry include Cross River, BCB Group, Customers Bank, DBS, OCBC, Mercury, Axos Bank, and even Swiss Banks.
The Feds may have taken down a couple of banks but there is a great number of crypto-pro banks still operating in the US and around the world.
If the Feds want to take them down, they will need to do so much more than what they are already doing against the crypto industry.