Crypto Report from Giant Bank: ‘Banking Crisis Helped Stablecoins!

JPMorgan In its report, after the bank crashes in the USA, stablecoin reported an increase in transaction volumes.

US Banking Crisis Could Offer An Opportunity For Stablecoins And Crypto Exchanges

A number of fintech payments companies and offshore banks are operating in the US, JPMorgan (JPM) said in a research report released Wednesday. Silvergate Bank, Silicon Valley Bank And Signature Bank’s He said it was trying to fill the void left by its collapse, but that establishing new banking networks would likely take time.

“Meanwhile, crypto market participants and investors seem to have become more dependent on stablecoins to move money,” analysts led by Nikolaos Panigirtzoglou wrote.

A stablecoin is a type of cryptocurrency whose value is pegged to another asset, usually the US dollar.

The bank says stablecoin transaction volumes spiked after March 8, when crypto-friendly bank Silvergate said it would voluntarily liquidate and terminate its operations. He states that Tether (USDT) has gained a larger share.

JPMorgan says that the collapse of the three banks affected crypto firms in different ways. Crypto companies with diversified banking partners, such as some exchanges, were less affected.

“The banking crisis may present an opportunity for some exchanges that can gain market share by offering banking services to crypto-origin firms and investors,” the report said.

In the long run, though, it is vital for the crypto ecosystem to replace lost banking networks so that fiat currency can be transferred efficiently and securely between market participants and “at the same time ensures the stability of the stablecoin universe.”

According to the report, the tougher regulatory stance of the US could lead crypto market participants to banking networks in Europe and Asia.

*Not investment advice.