Silicon Valley Banka American bank specialized in the financing from venture capital with an appetite for cryptois in the grip of a beginning from banking panic.
Update 10/03/2023 at 6:00 PM : The bank has just been closed by the California Department of Financial Protection and Innovation, which has appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
While Silvergate Bank just closed store, SVB Financial Groupanother California-based financial institution that primarily serves fintechs and tech startups, including cryptomeeting of great difficulties.
The aggressive increase from rate of the Federal Reserve (Fed) of the United States is partly responsible for its setbacksaccording to analysts.
The bank founded in Silicon Valley in 1983 announced Wednesday a surprise capital increase to face a liquidity riskThis has had a major impact on the shares of the largest US banks on the stock market, and probably also on the crypto stocks that have already been very badly hit this month. Bitcoin has lost more than 10% of its value in the space of a week.
Just like the now defunct Silvergate Bank, Silicon Valley Bank is an institution called crypto-friendly and therefore counts companies from this industry as clients.
Silicon Valley Bank, another crypto-friendly bank, is under pressure. The bank is generally considered one of the default fallback options for industry players affected by the Silvergate collapse,” commented Ilan Solot, co-director of crypto at Marex.
Several large VCs cryptoincluding Mechanism Capital, have advised projects in their portfolio to withdraw their funds from the bank. According to BloombergPeter Thiel’s investment company, Founders Fundalso recommended that its partner startups stay away from Silicon Valley Bank.
Yesterday, Greg Beckerthe bank’s boss, asked his clients to “ remain calm,” according to a person close to the case quoted by the U.S. news agency.
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