Gemini Reaffirms Relationship JPMorgan. Gemini, a cryptocurrency exchange, has refuted allegations that it is no longer banking with JPMorgan, a major American bank. Gemini tweeted that its relationship with JPMorgan “remains intact” in a succinct and to-the-point manner.
The rumors come at a time when there is uncertainty regarding the future interaction between the banking system and the cryptocurrency sector in the United States. This is because of a regulatory crackdown and a market exodus following the abrupt demise of the cryptocurrency exchange FTX, which led banks to cut back on their exposure to cryptocurrencies.
The most recent illustration of how the future of the banking sector and the crypto business in the US are inextricably linked is Silvergate Bank. The crypto-friendly bank disclosed intentions to shut down its network for payments using digital assets on March 3, 2023.
Gemini Reaffirms Relationship JPMorgan. Since the bank postponed submitting its yearly 10-K financial filings, worries grew last week that a liquidity crisis could result in Silvergate declaring bankruptcy.
In order to reduce withdrawal surges, Silvergate reportedly borrowed $3.6 billion from the US Federal Home Loan Bank System (FHLB). The FHLB is an association of 11 regional banks from different parts of the country that lend money to other banks and lenders.
Signature Bank is a different bank that is avoiding cryptocurrency. The closure of cryptocurrency-related accounts and plans to reduce back crypto services were all announced by Signature in December.
Due to liquidity issues brought on by the bear market and the bankruptcy of FTX, Signature Bank also borrowed close to $10 billion from the FHLB system in the final quarter of 2022. The bank’s action had an effect on cryptocurrency businesses. Last month, Binance made a temporary suspension of bank transfers in US currency.
The cryptocurrency exchange had said weeks earlier that only individuals with accounts with over $100,000 in money would be able to complete deals through its SWIFT transfer partner, Signature Bank.