The collapse of Silicon Valley Bank (SVB) underscores the need for creating a reliable bank for the digital asset industry. This was stated by Tron founder Justin Sun.
Recent incidents like the SVB situation highlight the potential harm caused to many in the industry. It’s time to build a reliable bank that can cater to the needs of the crypto industry. As a supporter of this ecosystem, I’m open to any idea that can help create such a bank.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 12, 2023
“Recent incidents highlight the potential harm caused to many in the industry. It is time to create a bank capable of meeting the needs of the crypto industry,” Sun wrote.
He noted that he is open to ideas and collaboration on the matter. In turn, the founder of Tron is ready to provide “financing, management and operational support.”
I’m willing to collaborate with my friends to provide funding, management, and operational support, whether it’s onshore or offshore. A robust banking infrastructure that bridges traditional finance and crypto is essential to enable wider adoption of cryptocurrencies.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 12, 2023
“A robust banking infrastructure that bridges traditional finance and cryptocurrency is essential to enable broader adoption of digital assets,” he added.
Sun also urged collaboration to create a “safe and regulated” environment in the crypto industry and, in the future, avoid similar situations.
Let’s work together to establish a safe and regulated environment for the crypto industry and ensure that incidents like the SVB case do not occur in the future.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 12, 2023
On March 10, the California Department of Financial Protection and Innovation closed Silicon Valley Bank and appointed the FDIC as receiver. The reason for this decision was “insufficient liquidity and insolvency.”
U.S. regulators stated, that depositors will gain access to their deposits on March 13, funded by shareholders and some holders of unsecured bonds.
These measures will also affect Signature Bank, which, along with Silvergate, was one of the leading banks for participants in the crypto industry.
On March 11, in the wake of the SVB collapse, the stablecoin USDC and algorithmic “stablecoins” DAI and FRAX lost their peg to the U.S. dollar.
Later, the USD Coin issuer Circle assured that it had addressed issues with the asset’s banking arrangements.