Uh oh! The crypto collapse has reached the real financial system

Liquidity trouble? | Illustration by William Joel / The Verge Silvergate, one of the most important banks in crypto, is in big trouble. Maybe existential trouble. Silvergate didn’t start in crypto. It started in real estate. But in January 2014, the bank jumped into Bitcoin, a volatile year — Bitcoin started the year at $770 and closed above $300 in December. “Some of the companies that were being formed at the time to provide services to this budding Bitcoin space, many of them were struggling to find and maintain bank accounts,” said Silvergate CEO Alan Lane in a June 2022 episode of the Odd Lots podcast. “So that was really where we started.” “We’ve got all of them,” Lane said in 2022. “All of the major ones.” The focus at the bank was institutions — other companies, some of which work with… Continue reading… from The Verge – All Posts https://ift.tt/gXBzUJL via Grabey
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