April 25, 2024

Former FTX Executive Predicts Fierce Competition between Banks and Crypto Firms Following the Silvergate Fallout

On March 14, Brett Harrison, a former FTX top executive, issued a report arguing that the fallout of the fast-growing global banks Silvergate Capital and Signature bank will lead to unhealthy competition between the traditional banks and crypto firms.

Harrison stated that the now-defunct banks Silvergate and Signature initially owned a significant market share that limited the expansion of the crypto industry. In his argument, Harrison stated that the closure of the embattled crypto-focused banks had created more opportunities for digital asset providers.

He stated that the race to gain dominance in the banking sector had inspired crypto firms to seek partnerships with leading financial providers. Harrison revealed  that crypto firms are eying for a partnership with Mercury, Seba Bank, and Brex, among other key players in the banking industry. 

Scramble to Gain Market Dominance

As per Harrison’s report, the current development in the banking and crypto firms will transform the financial sector. He stated that through the partnership, crypto derivatives generate the desired results.

Harrison argued that banks have always been willing to work with crypto firms to meet the desired customer satisfaction. 

On the contrary, Harrison lamented that the recent collapse of Silvergate, Signature and Silicon Valley has negatively affected the investors. He decried that the recent fallout of the top three leading banks would diminish people’s quality of life.

Harrison compared the current situation in the banking industry with the January CME recordings, whereby the investors lost confidence in crypto spot transactions where the Bitcoin options reached their highest points. He remains optimistic that investors will launch new exchanges to bridge the banking sector’s gaps.

 

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