Chaos in US banks could push crypto industry toward decentralization

The crypto industry lost some banking on- and off-ramps due to recent banking turmoil, signaling a potential shift toward decentralization.

Highlights

Silvergate Capital, Silicon Valley Bank and Signature Bank all shut down or were closed last week.
The shuttering of these banks also has bigger implications on the crypto industry because some were providing services to the industry.
With these banks’ closure, it will become difficult for cryptocurrency businesses to move money between entities and access banking services, Mina Tadrus, CEO of quant investment management firm Tadrus Capital LLC said.
This could lead to a decline in participation in participation within the crypto community and make it difficult for crypto startups to build new products or remain operational in the long term, Tadrus said.
The closure of banks signals a potential shift in the space toward decentralization and a need for regulation.

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