According to a report by Bloomberg, as turmoil in global banks continue, crypto companies are moving their money from banks to asset managers. However, industry insiders see this move as a means to mitigate damage rather than the end of banking for the crypto sector. The collapse of crypto-friendly banks Silvergate, Silicon Valley Bank (SVB), and Signature Bank has so far resulted in three major bank failures in the US. Many crypto companies have found it difficult to find new banking partners in the wake of the bank collapses. The report added that asset management firms – not traditional banks – now stand out as more attractive options for the industry. Fidelity Investments and other asset managers have already received requests for help from a growing number of crypto companies. Per the report, a crypto industry executive has already referred around 25 companies to Fidelity in the last three days alone. Peer-to-peer platforms and decentralized exchanges are also reportedly growing given the difficulties crypto companies have had with banking. Despite the failure of banks, industry insiders believe that the crypto industry is incredibly resilient and will adapt to changing circumstances. There is also no evidence to suggest that the banking crisis is part of a plan to choke crypto.
