Bank

Swiss pair of European lenders, Amina Bank and Sygnum, are stepping up their crypto operations. Both banks hope to fill the void in crypto payments following the collapse of crypto-friendly US banks about a year and a half ago.
Also read: <a href="https://www.cryptopolitan.com/gamefi-tokens-returning-narrative/" rel="noopener noreferrer nofollow">GameFi tokens show signs of returning narrative with 700% volume growth</a>
As reported by Bloomberg, the two Swiss banks want to fill the gap left after the closure of Silvergate Exchange Network (SEN) and Signature Bank’s Signet platform. The two banks played a critical role in enabling liquidity for the crypto market before their demise in March last year.
<h3 id="span-style-font-weight-400-move-by-swiss-banks-will-help-crypto-firms-execute-trades-span">Move by Swiss banks will help crypto firms execute trades</h3>
According to the Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-07-23/swiss-banks-aim-to-plug-crypto-payments-gap-left-by-us-collapses" rel="noopener noreferrer nofollow" target="_blank">report</a>, SEN enabled the movement of $117 billion in the quarter before Silvergate liquidated. It also reported that Signet processed $275.5 billion before <a href="https://www.pymnts.com/news/banking/2023/signature-bank-shut-down-and-placed-under-fdic-control/" rel="noopener noreferrer nofollow" target="_blank">US authorities took over</a> Signature.
The collapse of the two financial services left crypto players in a fix. The liquidity situation worsened following the collapse of the crypto exchange FTX in 2022, and crypto players are still looking for alternatives.
Now, the <a href="https://www.pymnts.com/cryptocurrency/2024/swiss-lenders-aim-to-fill-crypto-payment-gap/" rel="noopener noreferrer nofollow" target="_blank">two Swiss banking firms</a> are looking at filling that gap with a 24/7 network for instant transactions for both fiat currencies and crypto assets, with no fees for transfers between network members, according to Bloomberg.
According to Kok Kee Chong, chief executive of Singapore-based crypto exchange AsiaNext, this will help crypto companies “execute trades and settle positions more quickly.” Chong added, “This improves market liquidity, as traders can respond to market movements in real-time without having to wait for settlement.”
According to Bloomberg, filling the instant payments gap has become more urgent for the crypto market because of the increased institutional investment, with the launch of exchange traded funds (ETFs) in Australia, Hong Kong, and the US.
<h3 id="span-style-font-weight-400-bank-executives-believe-span-span-style-font-weight-400-payment-gaps-still-exist-span">Bank executives believe payment gaps still exist&nbsp;</h3>
Chief product officer at Amina Bank Myles Harrison told Bloomberg in an interview that the closure of Silvergate and Signature left the crypto landscape “fragmented.” This resulted in a glaring separation between “what is happening in the North and the rest of the world.”
She also said the bank wants to capitalize on the situation and bring normalcy. Currently, Amina supports instant transactions in Swiss francs, euros, and US dollars. The bank is also planning to add more fiat currencies including in Hong Kong and Singapore.
Also read: <a href="https://www.cryptopolitan.com/silvergate-to-face-lawsuit-over-alleged-ftx/" rel="noopener noreferrer nofollow">Silvergate to face lawsuit over alleged FTX exchange fraud</a>
According to Harrison, the bank has already set up subsidiaries in these areas. Harrison added that Amina’s network will include stablecoins and on-chain settlements.
Meanwhile, BCB Group which operates an instant payment network for crypto companies – Blinc indicated it experienced increased activity on the platform’s Euro and GBP settlements since last year.
Liquidity gaps still remain a challenge in the crypto industry, according to Sygnum Bank’s chief product officer Thomas <a href="https://www.linkedin.com/in/thomas-eichenberger-622a645a/" rel="noopener noreferrer nofollow" target="_blank">Eichenberger</a>. He added that settlement and clearing remains a challenge and the gap “has still not been closed to the extent that professional market participants would’ve wished for.”

Swiss banks seek to close crypto payments gap

Table of Contents

Cryptopolitan_News

Other articles published on Jul 24, 2024

QCP Capital Analysts Share Their Expectations for Bitcoin and Ethereum Until the US Presidential ...

Elon Musk's Bitcoin Endorsement Sparks Speculation

Bitcoin Investors Now Have Path to Portuguese Citizenship

Bitcoin Is The Top Choice For Criminal Activity, Europol Report Shows

Crypto Market Update: Elon Musk Laser Eyes Fuels Bitcoin Speculation While RCOF Continues Race to...

How MoonBag’s $3.5 Million Liquidity Strategy Aims for Stability Amid Render’s Fluctuations

Join our free newsletter for daily crypto updates!