In a recent tweet thread, American journalist Carl Quintanilla revealed that JPMorgan, a prominent banking giant in the United States, had commented on the recent collapse of $SI, describing it as “another setback for the #crypto ecosystem.”
According to JPMorgan, replacing the instantaneous network for processing dollar deposits and withdrawals would be a challenging task. JPMorgan went on to highlight the reversal in the futures spread, which it viewed as indicative of a deterioration in demand.
In addition to its negative stance on digital assets, the bank indicated that it would require positive developments in two important areas – the growth of stablecoins and the rate of venture capital funding in the crypto space – before reassessing its outlook.
JPMorgan has suggested that the charts indicate no improvement in these areas, which is concerning. The bank’s pessimistic outlook on the digital assets industry implies that the path to recovery may be a long and challenging one.
However, these comments are likely to have a significant impact on the crypto market, as JPMorgan’s position carries a great deal of weight in the financial world.
Nevertheless, the $SI has sparked intense discussion and debate within the cryptocurrency community, with some expressing concerns about the long-term viability of digital assets while others remain optimistic about their potential for growth and development.
Furthermore, the demise of Silvergate has caused apprehension within the industry as there could be a reduction in inbound flows without the SEN or adequate dependable substitutes.
Although businesses can still turn to Signature Bank, whose Signet platform is akin to Silvergate’s SEN, it is worth noting that the bank has already announced its intention to decrease its cryptocurrency exposure following recent developments.
JPMorgan Ends Banking Relationship With Gemini Crypto Exchange
JPMorgan, the American banking giant, has decided to sever its banking ties with the cryptocurrency exchange Gemini, owned by the Winklevoss brothers, according to an insider.
In early 2020, JPMorgan took on Gemini and Coinbase, the U.S.-listed exchange, as its customers, as reported by the Wall Street Journal. While Coinbase has confirmed that its banking relationship with JPMorgan continues, JPMorgan refused to comment on the matter.
Gemini did not respond to requests for comment, but the exchange stated on Twitter that its banking relationship with JPMorgan is still active, despite earlier reports.
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