What about recent events would suggest more institutions wanting to get a piece of this action? I'm not being snarky, I'm trying to figure out where banking is going to come from now. Cobbled together small players, is that what it looks like?
Plenty of banks want billions of dollars of business. Smaller banks jump at 100 million of deposits here and there for some niche market. The properly run crypto organizations are still banked fine, USDC - a stablecoin that isn't considered controversial - has $40bn on deposit at BNY Mellon. There are also many financial institutions under state charters and other concoctions that are or seek to operate better for the crypto industry. And crypto organizations have undergone more serious stress tests and banking isolation before.
Silvergate's stress came from holding normal super boring bonds and needing to liquidate those, it needed to liquidate because of the mismanaged crypto organizations, but its ability to liquidate came from its own portfolio choices during a coincidental macroeconomic environment and not crypto.
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What about recent events would suggest more institutions wanting to get a piece of this action? I'm not being snarky, I'm trying to figure out where banking is going to come from now. Cobbled together small players, is that what it looks like?
Plenty of banks want billions of dollars of business. Smaller banks jump at 100 million of deposits here and there for some niche market. The properly run crypto organizations are still banked fine, USDC - a stablecoin that isn't considered controversial - has $40bn on deposit at BNY Mellon. There are also many financial institutions under state charters and other concoctions that are or seek to operate better for the crypto industry. And crypto organizations have undergone more serious stress tests and banking isolation before.
Silvergate's stress came from holding normal super boring bonds and needing to liquidate those, it needed to liquidate because of the mismanaged crypto organizations, but its ability to liquidate came from its own portfolio choices during a coincidental macroeconomic environment and not crypto.