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News Explorer — U.S. Bank Failures Caused a Decline in Institutional Crypto Trading and a Shift Away From Stablecoins

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Oct 23, 1:10 pm
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U.S. Bank Failures Caused a Decline in Institutional Crypto Trading and a Shift Away From Stablecoins

Institutional crypto trading volume in North America plummeted after a series of high-profile U.S. bank failures in March, leading to a contraction in crypto activity. The failure of banks such as Silicon Valley Bank, Signature Bank, and Silvergate left crypto businesses struggling to access US dollar liquidity, forcing them to seek banking support offshore. As a result, stablecoins lost their presence in North America, with the region's share of crypto volume occupied by stablecoins dropping from 70.3% to 48.8% between February and June.

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