Why does crypto care about what’s going on with banks? Because they’re all tied together these days. ⛓️
We won’t spend a terrible amount of time with the nitty-gritty of what’s going on in the banking world, but there are some fairly important developments.
First, Flagstar Bank ($FBC) has acquired most of Signature Bank’s ($SBNY) assets, excluding its cryptocurrency business. The FDIC and OCC gave their approval. The excluded cryptocurrency business will continue to operate independently, as the bank has been a pioneer in providing services to the crypto industry.
In a separate development, the FDIC announced that New York Community Bancorp ($NYCB), through its unit, will assume Signature Bank’s deposits.
On the other side of the Atlantic, Swiss banking giant UBS ($UBS) found itself in a precarious position, as it had to step in for an emergency rescue of its rival, Credit Suisse ($CS). CNBC reported that UBS shares dropped -10% (Credit Suisse nosedived -60%) due to the intervention, highlighting the uncertainty in the global banking sector.
Amidst these events, Justin Sun, the founder of blockchain platform TRON ($TRX), has expressed his desire to acquire the struggling Credit Suisse. Sun intends to turn the bank into a crypto-friendly institution, expanding its services and embracing the growing cryptocurrency and blockchain ecosystem.
And, to make things even better, if you’re from the U.S. and you think the Federal Reserve’s money printer only goes brrrrrr for us in the U.S., it goes brrrrr for the whole globe.
The U.S. Federal Reserve has expanded its international swap lines to boost dollar liquidity in global markets. The move comes as a response to increased demand for the U.S. dollar, which serves as the global reserve currency amidst prevailing market uncertainties. 🏧