2. March 2024

Crypto Firms Deny Exposure to Troubled US Banks in SVB Crisis

• The U.S. banking crisis is leading to problems for the cryptocurrency market, with some major firms having exposure to banks like Silicon Valley Bank (SVB).
• Several crypto firms have denied any exposure to these failed U.S. banks, including Tether, Crypto.com, Gemini and BitMEX.
• Tether chief technology officer Paolo Ardoino was one of the first to make a statement about no exposure to SVB and other troubled U.S. banks as of mid-March.

U.S Banking Crisis Impacts Cryptocurrency Market

The potential implications of the SVB crisis for the crypto market continue to unfold as several major cryptocurrency firms have denied exposure to dissolved U.S. banks like Silicon Valley Bank (SVB).

Crypto Firms Deny Exposure

Tether, the operator of the eponymous U.S. dollar-pegged stablecoin, Tether (USDT), was one of the first companies to deny exposure to SVB and other troubled U.S. banks as of mid-March.. On March 12, Tether chief technology officer Paolo Ardoino took to Twitter to announce that the stablecoin company has zero exposure to Signature Bank and previously said that Tether had no exposure to SVB on March 10.. Other major crypto firms such as Crypto .com, Gemini and BitMEX have also declared themselves unaffected by any issues in US banking so far.[1]

Tether’s USDT

Tether’s USDT is currently the largest stablecoin by market capitalization with a market value of $73 billion at the time of writing.[1] Its biggest rival USD Coin briefly lost its 1:1 peg with US Dollar after its issuer Circle could not withdraw $3.3 billion in reserves from SVB.[1]

Kris Marszalek’s Statements

Kris Marszalek CEO of Major Cryptocurrency Exchange Crypto .com provided similar statements on his company being unaffected by ongoing issues in US banking[1]. In subsequent tweets on March 10th and 13th Marszalek declared that Crypto .com had zero exposure to Signature Silvergate and SVB [1].

Conclusion

Despite potential implications for cryptocurrency due too US banking crisis many major crypto firms have confirmed they are not affected or exposed this issue so far [1]. This includes Tether which is currently largest stablecoin by market capitalization [1], along with Crypto .com Gemini and BitMEX [1].