Bank Collapse Tied to USDC Depegging
Several crypto firms are exposed
Today, everyone is talking about the Silicon Valley Bank (SVB) collapse. What happened and why is it significant? It turns out the bank was heavily invested in government bonds. When interest rates rose, bond values fell. Unfortunately, SVB didn’t have enough cash reserves and began selling its bonds for huge losses. This sparked a panic among some customers who began withdrawing their funds. Another bank, Signature Bank, followed. Janet Yellen has signaled that there will be no bank bailout even while deposits are being secured. As it turns out, some crypto firms were impacted.
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First published at Cryptocracy. Not to be construed as financial advice. Do your own research.