JPMorgan Says Silvergate Collapse Will Test Crypto Industry

JPMorgan Chase said that the crypto industry would struggle to replace the services offered by collapsed banking partner Silvergate Capital Corp. JPMorgan predicts customers will migrate to Signature Bank’s Signet payments network.

Highlights

• JPMorgan Chase said that the crypto industry would struggle to replace the services offered by collapsed banking partner Silvergate Capital Corp.
• The Wall Street titan said that crypto firms would be hard-pressed to replace Silvergate Exchange Network’s 24/7 payment rails quickly.
• With Silvergate going into voluntary liquidation, JPMorgan predicts customers will migrate to Signature Bank’s Signet payments network.
• The collapse of Silvergate and the financial woes indicate a deeper problem with the Federal Reserve tightening policy.
• Smaller institutions face the challenge of falling treasury yields and increasing pressure from the Fed to manage their risk adequately, according to a new report.
• The Federal Reserve has raised interest rates by about 4.5% in the past year.

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