The banking crisis in the US has also made market participants worried that this incident will have an impact on high central bank interest rates.Signature Bank, the largest crypto banking partner, was seized by regulatory agencies during this period due to the failure of Silicon Valley Bank.
Contractual counterparties play a key role in the US crypto ecosystem. If no banks step in to handle counterparties, the development of US crypto will drop significantly. Whereas currently, crypto is in recovery after experiencing a crash in 2022
"It will have a huge impact if no US bank accepts deposits from crypto clients," said Taylor Johnson, co-founder of PsyFi.
New York-based Cooperation Bank is not only a bank for crypto, but has a large share in real estate lending and law firm services.
Silvergate Bank, has been responsible for moving more than US$2 trillion in and out of crypto, according to data from Forbes.
The case is worrying but not damaging to crypto, as the industry can still rely on Silvergate Bank, the bank for other cryptos. However, it hit Silvergate hard during the crypto downturn last year, and announced on March 9 that it would cease operations.
