In The Midst Of The Banking Crisis, Crypto Companies Transfer Funds To Asset Managers Like Fidelity.

While the turbulence in the world's banks continues, cryptocurrency companies are shifting their funds from banks to asset managers. Yet, industry insiders do not believe that banking will no longer be a part of the crypto sector.

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With the fall of the symmetric encryption banks Silvergate, Silicon Valley Bank (SVB), and Signature Bank, the upheaval in the financial sector has so far resulted in three significant bank failures in the US.

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According to Trade Algo, several businesses are now carefully considering the manner in which they store the money in an effort to prevent further harm to the cryptocurrency sector.

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After the bank failures, many cryptocurrency companies found it challenging to acquire new banking partners. According to the report, asset management organizations, rather than traditional banks, now stand out as the more appealing options for the sector.

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According to the report, an increasing number of cryptocurrency businesses have contacted Fidelity Investments as well as other investment firms for assistance. One executive in the cryptocurrency sector claimed to have recommended about 25 businesses to Fidelity in the past three days alone. He added: "The businesses included cryptocurrency market participants and venture firms targeted at the crypto industry."

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Although Fidelity isn't a traditional bank, they are unquestionably safer than banks in the tiers two and higher.

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Cryptocurrency is "very robust."

Tey El-Rjula, co-founder and CEO of the crypto ramping business FLUUS, claims that while the loss of a number of crypto-friendly banks would be noticed by the sector, it is unlikely to cause any significant issues.

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El-Rjula stated in a statement provided to Cryptonews.com, "It's crucial to highlight that the crypto business is highly robust and has demonstrated the ability to adapt to changing circumstances.

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He continued by saying that other other financial firms are now developing novel approaches to the crypto sector's problems and that as the market expands, new entry points will inevitably appear.

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Peer-to-peer networks and decentralised exchanges (DEXs) are expanding, which might be considered as a natural progression given the challenges crypto firms have had with banks, El-Rjula also said. He said:

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These platforms enable users to transact in cryptocurrencies without the aid of a centralized middleman like a bank.

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Not a strategy to "shut off crypto"

In a separate statement to Cryptonews.com, Berk Ozdogan, Head of Strategy at the cryptocurrency exchange Dexalot, disputed the claim made by some within the community that the banking crisis was somehow intended to strangle cryptocurrency.

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In a statement on Wednesday, Ozdogan stated, "Although the closure of SVB, Silvergate, and Signature is a setback again for financial services industry, I don't buy into the 'this was planned to choke crypto' narrative.

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He said that the narrative doesn't make much sense because both SVB and Signature Bank had client base that were "far bigger" than merely Web3 companies.

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But, as Ozdogan said, the bankruptcy of the banking institutions has made it possible for other institutions to provide their services to the cryptocurrency sector.

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He continued, "Banks with greater risk management strategies can now excel and take market share.

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