16 days ago 2 min read

DCJ Test

Silicon Valley Bank (SVB) is a well-known financial institution that has been in business for 40 years. Unfortunately, it has recently collapsed, causing a shock in the technology and life sciences sectors. However, some venture capitalists and investors have banded together to lessen the impact of its failure on tech businesses. A statement supporting SVB has been signed by about 125 venture capitalists and investors, including Sequoia Capital and General Catalyst. In contrast, US Treasury Secretary Janet Yellen has said that the government will not intervene to save the institution, but it will help the depositors during the closure. The bank has been taken over by the Federal Deposit Insurance Corporation (FDIC), and procedures are being devised to help US clients who may be harmed by the shutdown.

Moreover, the UK SVB branch has collapsed, causing turmoil in the UK tech industry. The government has developed plans for an emergency funding lifeline to assist companies affected by the collapse. Chancellor Jeremy Hunt has labeled the problem a "high priority" and has been meeting with the Prime Minister and the Governor of the Bank of England late at night. Signature Bank in New York was also shut down to protect clients and the financial system in the wake of the demise of California's Silicon Valley Bank. The Federal Reserve, Department of the Treasury, and FDIC made the announcement.

In contrast, the acquisition of the UK Silicon Valley Bank excites HSBC and JP Morgan, two enormous institutions. HSBC is considering a bid for the troubled technology-focused lender's British branch, joining many smaller rivals in the emergency sale process sparked by the parent company's US parent's transfer to government control.

Amid all these, IOSG Ventures, a venture capital company that finances blockchain projects, has reassured the cryptocurrency community that it has no connection to Silvergate or SVB, two institutions that have been implicated in the recent de-pegging of USDC. It urged the cryptocurrency community to "preserve decentralization," a reference to how crucial it is to maintain the decentralized nature of the bitcoin market and its independence from conventional financial institutions. After USDC de-pegged, Circle, a stablecoin mint, produced an additional $407.8 million USDC, making a total net change of $463.8 million. However, after some good events relating to SVB's $3.3 billion in reserves held by Circle and its new banking partners, USDC rose back near its $1 peg, and at the time of writing, USDC is up 3.3% over the previous day to be trading at $0.99.

The recent SEC crackdown on staking services provided by centralized providers, including Coinbase, has caused concern among investors. However, Coinbase has reassured its users that their staking services will continue despite the SEC's regulatory hurdles. This news comes as a relief to many investors who have been relying on Coinbase's staking services to earn rewards on their digital assets. Additionally, a representative from Minnesota has commented on the Biden administration's criticism of digital asset owners, further highlighting the growing importance of cryptocurrencies in the US economy. With the updated staking terms and conditions, Coinbase aims to provide customers with benefits through decentralized protocols rather than through the exchange itself, further demonstrating their commitment to providing secure and reliable staking services to their users.

Finally, the Federal Reserve (FED) has announced a $25 billion Bank Term Financing Program to support banks and other depository institutions. This sum of money will ensure that banks have enough liquidity to accommodate consumer withdrawal requests during tumultuous periods, especially in light of the possibility of some US central banks failing, such as Silvergate, SVB, or most recently, the closure of Signature Bank.

Mary Tess
Mary Tess
5-year experience being a blind item writer. And now I decided to take my expertise and venture in this world of crypto. I visit a variety of salons for the best hearsays on the blockchain world.
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