JPMorgan, the world’s largest bank by market cap, has assessed the U.S. banking crisis triggered by the collapses of crypto-friendly Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank in a recent research report.
The report has pointed out that the crisis could be an opportunity for some crypto exchanges.
- JPMorgan said some exchanges could increase their market share by offering banking services to crypto-focused firms and investors amid the banking crisis.
- The banking giant also underlined that replacing the lost banking networks is vital for the crypto ecosystem.
- In the report, JPMorgan analysts stated that crypto market participants and investors have become more reliant on stablecoins, the cryptocurrencies pegged to another asset, after the banking crisis.
- The data in the study showed that stablecoins jumped in trading volumes after March 8, when the crisis started.
- The report also remarked that crypto firms with diversified banking partners were much less impacted by the turmoil.
- The research added that the stricter regulatory attitude in the U.S. could cause crypto market participants to turn to the banking networks in Europe and Asia.
- March saw the three consecutive crypto-friendly bank collapses with the shutdown of Silvergate Bank, SVB, and Signature Bank in just a week.
- The collapse of SVB, previously the 16th largest bank in the U.S., marked the biggest U.S. bank failure since Washington Mutual in 2008.
