Turbulence in TradFi has created conditions for some Bitcoin exchanges to increase their market share by offering banking services to crypto-native firms and investors. Analysts at JPMorgan came to these conclusions, CoinDesk reports.
Analysts noted a rise in trading volume of stablecoins, as the latter have been used more to move financial value. In light of recent events, Tether has managed to strengthen its position, they added.
Analysts noted that the void created by the collapses of Silvergate Bank, SVB and SBNY is also being filled by fintech firms and offshore banks.
To a lesser extent, crypto firms with diversified partners in TradFi and some exchanges escaped the crisis.
JPMorgan stressed that in the long run, for the ecosystem it is vital to replace the lost banking rails. This is necessary for the efficient and secure transfer of fiat between market participants, “while at the same time ensuring the stability of stablecoins”.
A tougher regulatory stance in the United States could push crypto market participants toward banking networks in Europe and Asia, experts concluded.
Moody’s noted, that the recent decoupling of USDC from the US dollar could hinder the development of stablecoins and lead to tighter regulation.
Earlier representatives of the issuers of this “stablecoin” — Circle and Coinbase — said that problems in the banking sectorled to uncertainty in the cryptocurrency market.