Silicon Valley Bank and Signature Bank Collapse/Crypto Asset Fund Outflows Record Outflow[Top News from 3/11 to 3/17]| coindesk JAPAN | Coindesk Japan

“People are preparing for the worst. They are moving to more trustless assets,” said Charles Story, head of growth at crypto index platform Phuture. I will look back on the digest.

Silicon Valley Bank, known for lending to startups, has collapsed. The bankruptcy of a US bank is the largest since the 2008 Lehman Brothers bankruptcy.

For the cryptocurrency industry, this is a big blow, on par with the voluntary liquidation of cryptocurrency-friendly Silvergate Bank. In particular, the issuer of the USD coin (USDC), which had a considerable amount of reserves deposited in the Silicon Valley Bank, is attracting attention.

According to Circle, USDC has $43.1 billion in circulation and $43.2 billion in reserves. Twenty-six percent of the reserves, or $11.4 billion, are held in cash at banks such as Silicon Valley Bank and Silvergate Bank.

Investment firm Bernstein said in a March 10 research report that the future of finance will be one without banks. Banks will continue to exist, but in their role as “old wealth custodians,” he said.

“New wealth creation and innovation in financial services will move into the world of new financial apps on the Ethereum ecosystem,” said analysts Gautam Chhugani and Manus Agrawal. writing.

Facebook parent company Meta Platforms is working on a text-based decentralized social app, Tech Crunch reported on March 10.

The article, citing a Meta spokesperson, said the app would become a stand-alone product for sharing text updates. The news first appeared on Indian business news site MoneyControl.

USD Coin (USCD) has lost about $1 billion in market capitalization since the morning of March 10, when Silicon Valley Bank (SVB) collapsed, according to Nansen data. there is

CoinMarketCap data also showed USDC’s market capitalization fell to $42.4 billion from $43.5 billion on the 10th. USDC also broke below $1, indicating market concerns about reserves.

DEX (decentralized exchange) trading volume hit a record high of $25 billion on March 11, according to data from DefiLlama.

The previous record is $24.3 billion in May 2021. At the time, Bitcoin (BTC) was around $65,000 and Ethereum (ETH) was around $4,400.

Signature Bank, which has numerous cryptocurrency companies as clients, was shut down by the New York State Department of Financial Services (NYDFS) on March 12.

Adrianne Harris of the New York State Department of Financial Services (NYDFS) said in a statement that the Federal Deposit Insurance Corporation (FDIC) had become the trustee. Silvergate Bank went into voluntary liquidation on the 8th, and Silicon Valley Bank went bankrupt on the 10th, making three banks bankrupt in less than a week.

All Silicon Valley Bank depositors will be fully insured and will be able to access their deposits on March 13. FDIC) announced in a joint statement on March 12.

“Following recommendations from the FDIC and the Federal Reserve, and after consulting with the President, Treasury Secretary Yellen has authorized steps to complete the resolution of the Silicon Valley Banks in a manner that fully protects the FDIC’s all depositors.” Treasury Secretary Yellen, Fed Chairman Jerome Powell and FDIC Chairman Gruenberg said in a joint statement.

British financial giant HSBC Holdings Plc will acquire Silicon Valley Bank (SVB) UK, a British subsidiary of Silicon Valley Bank, for £1 (about 160 yen).

As of March 10, SVB UK had about $6.6 billion in loans and about $8.1 billion in deposits, according to filings.

A wallet named after Ethereum co-founder Vitalik Buterin spent 500 Ethereum (ETH), or just over $700,000, over the weekend on a little-known scam. Minted RAI, a tablecoin, and used the funds to buy USD Coin (USDC), which was trading below the $1 peg.

A wallet called vitalik.eth was created seven years ago and held over 5,360 ETH as of March 14th. An Ethereum Names Service (ENS) domain is tied to a crypto wallet, but not necessarily held by a prominent person associated with the name.

The U.S. Treasury will soon release a risk assessment analyzing the criminal use of DeFi (decentralized finance).

“Cheat actors are always looking for effective ways to hide their criminal activities and laundering their proceeds,” said Elizabeth Rosenberg, “threats to DeFi services and other elements of the crypto ecosystem.” ), the Assistant Secretary for Terrorism Financing and Financial Crimes, said at a banking event in Sydney, Australia, Thursday.

The Federal Deposit Insurance Corporation (FDIC) has confirmed a successful transfer of deposits to Bridge Bank, giving Silicon Valley Bank depositors full access to their funds beginning the morning of March 13. announced that it would

The new bridge bank, called “Silicon Valley Bank NA,” operated by the FDIC, will have normal business hours, an automatic switch for customers, the regulator said in a statement.

Trading of Bitcoin (BTC) options listed on Deribit, a crypto asset (virtual currency) exchange, has surged following the US bank failure and the accompanying market volatility.

Data from cryptocurrency data provider Amberdata shows that over the past 24 hours, Deribit has traded $2.4 billion worth of bitcoin options, with daily trading volume expected to reach May 2021. It was the highest since the 17th. Bitcoins traded in the last 24 hours hit a record high of 99,195 BTC at the time of writing.

Outflows from crypto assets (virtual currency) funds reached record levels last week.

Outflows hit $255 million last week, representing a fifth straight week of outflows, or 1% of assets under management (AUM), according to a report released by CoinShares on Wednesday. Most of the outflows were from Bitcoin (BTC) funds, with a net outflow of about $244 million.

Businesses in the eurozone could be obliged to accept the digital euro if it is deemed legal tender, according to a document obtained by CoinDesk and due to be submitted to finance ministers after March 13. have a nature.

Giving central bank digital currencies (CBDCs) the same status as banknotes and coins would mean that they would be obligated to pay and be forced to be given or received at face value, the document said.

Meta will stop supporting NFTs on Instagram and Facebook.

Meta’s head of commerce and financial services Stephane Kasriel tweeted on March 13 that the suspension will allow the company to “focus on other ways to support creators, people and businesses.”

Signature Bank was shut down by the New York State Department of Financial Services (NYDFS) on Wednesday and transferred to the Federal Deposit Insurance Corporation (FDIC). Since then, the FDIC is looking for a buyer, but the buyer is reportedly required to agree on one big caveat. Do not handle crypto assets.

Reuters reported on the afternoon of the 15th, citing a person familiar with the matter.

Bitcoin (BTC) dominance — the share of Bitcoin’s market capitalization in the total cryptocurrency market — hit a nine-month high of 45.5%, according to TradingView data. It has exceeded 45% since June 25, 2022.

Bitcoin (BTC) funds are draining coins as speculation that the Federal Reserve (Fed) is leaning toward easing liquidity sooner after an American bank failure.

According to data from ByteTree Asset Management, the number of coins held by exchange traded funds (ETFs) specializing in closed-end funds, spots and futures in Europe, the United States and Canada this month reached 16,560 BTC ($409 million, about 54.4 billion yen) to a 17-month low of 826,113 BTC.

The U.S. Federal Deposit Insurance Corporation (FDIC) denied the report, saying it would not require signature bank buyers to abandon their cryptocurrency business.

Citing two unnamed sources, Reuters reported on Monday that “purchasers of Signature Bank must agree to abandon all cryptocurrency operations of the bank,” while the FDIC spokesperson denied this.

Cross River Bank has been making headlines in the crypto industry following the collapse of crypto-friendly Silvergate Bank, Silicon Valley Bank and Signature Bank.

The bank is a venture-backed, FDIC-protected regional bank in New Jersey. It is both a financial institution and a fintech company.

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