JPMorgan Cautions Crypto Market of Impending Doom After Silvergate Shutdown – Silvergate Capital (NYSE:SI)

The Recent collapse of the cryptocurrency banking firm Silvergate Capital Corp (NYSE:SI and the termination of the Silvergate Exchange Network According to a report by, (SEN) will pose a challenge for the crypto industry. JPMorgan Chase. 

Silvergate was used as a portal for more than 1,000 participants in the institutional crypto market to transfer fiat currencies between their Silvergate Accounts and other Silvergate customers.

Coindesk According to JPMorgan analysts, the report was led by Nikolaos Panigirtzoglou, According to the old saying, “Replacing this instantaneous network for processing dollar deposits and withdrawals among crypto market players will be difficult in the current environment and the overall reluctance of traditional banks to interact with crypto companies after the FTX collapse and due to high regulatory pressures.”

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JPMorgan’s report highlighted it was inevitable for some of the payment and custody services offered by Silvergate To move to another bank such as Signature Bank, Provident Bancorp, Metropolitan Commercial Bank And Customers Bancorp.

HoweverThe note read: It It was impossible Signature Bank Could completely replace Silvergate Due to regulatory pressure and market forces to reduce crypto-related risks.

Signature Bank already revealed it intended to reduce its reliance on digital asset client deposits.

The entry of new depository institutions also seemed unlikely due to regulatory scrutiny of cryptocurrency risks.

The report suggested this left few alternatives for institutional crypto investors in the U.S., particularly smaller and less established market participants, who might seek banking services in Europe Oder in other areas.

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