• Gemini claims its banking relationship with JPMorgan is still intact.
• Silvergate Bank has been facing a bank run and a delay in releasing its annual report.
• US federal regulators issued a warning to banks on crypto-related liquidity problems.
Gemini’s Relationship with JPMorgan
Gemini – a leading American-based crypto exchange – recently broke its silence on the ongoing reports of leading American banking institution – JPMorgan cutting ties with the crypto exchange. The crypto exchange claimed there was no change in its relationship status with the multi-national bank and that their banking relationship remains intact. This service was extended to only United States-based customers. JPMorgan had agreed to provide cash management services and manage dollar-based transactions when it first forged an alliance with Gemini in May 2020 alongside another popular American crypto exchange – Coinbase.
Silvergate Bank Distancing from Crypto Exchange
Silvergate Bank, a crypto-focused financial service provider, has been showing signs of distress which resulted in several crypto-firms, including Gemini distancing from the bank. The crypto exchange had stated that it has stopped accepting deposits and processing withdrawals via Silvergate due to recent collapses and bank runs within the industry. The once-popular crypto exchange FTX’s collapse also caused concern for Silvergate after it announced it would delay the release of its annual report in an SEC filing, raising doubts about survival as a going concern resulting in its share price taking a dive in the market.
US Federal Regulators’ Warning
The US federal regulators issued a warning to banks on crypto-related liquidity problems due to recent events such as market events and uncertainty, market volatility, etc., along with unpredictability of scale deposit inflows and outflows being one of the main reasons for risk posed by funding from cryptocurrency firms. The panel consisted of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of Currency who addressed this issue during their statement given on this matter for banks across America.
Gemini – an American based cryptocurrency exchange – recently spoke out about ongoing reports stating that multinational banking institution JPMorgan cut ties with them; however they insist that their banking relationship remains intact despite these reports circulating around Wall Street Journal claiming otherwise. As well as this, due to recent collapses within cryptocurrencies such as FTX, Silvergate Bank -a cryptocurrency focused financial service provider – is facing difficulty which is causing several other exchanges such as Gemini distancing themselves from this company due to lack of trust or reliability amid current events happening within cryptocurrencies lately. Furthermore US federal regulators have issued warnings due to potential liquidity risks faced by banks should they decide to fund or invest into cryptocurrencies related firms or operations due to unpredictability within these kinds markets which can prove volatile at times both economically or financially speaking without prior notice or indication before hand making these investments highly risky if not taken into account properly beforehand regarding these issues faced when investing into cryptos directly or indirectly through any third party involved at all stages throughout process duration wise etcetera overall speaking for sure definitely etcetera indeed too then yeah finally etcetera .
It appears that despite some speculation suggesting otherwise Gemini’s relationship status with JPMorgan remains intact but cryptocurrency exchanges are treading carefully amidst recent events concerning blockchain technology providers like Silvergate Bank where caution is advised when entering into any kind agreement related directly or indirectly involving cryptos especially when investing funds either way either directly involved parties or not etcetera overall speaking for sure definitely etcetera indeed too then yeah finally etcetera .