A number of fintech payment firms and offshore banks are trying to fill the void left by the failures of America’s Silvergate Bank, Silicon Valley Bank and Signature Bank, but the new It will take time for the banking network to become established, JPMorgan said in a March 22 research report.

“Meanwhile, crypto market participants and investors have become more dependent on stablecoins than ever before,” said JP Morgan analysts led by Nikolaos Panigirtzoglou. ‘ writes. A stablecoin is a type of crypto asset whose value is pegged to another asset, usually the US dollar.

Trading volumes in stablecoins have surged since March 8, when crypto-focused firm Silvergate announced it would voluntarily liquidate and scale back its operations, according to JP Morgan. In particular, it points out that Tether (USDT) is gaining a larger share.

JP Morgan says the three bank failures affected crypto companies differently. Crypto firms with diverse banking partners, like some exchanges, were less affected.

“The banking crisis presents an opportunity for some exchanges to gain market share by providing banking services to cryptocurrency companies and investors,” the report said.

In the long term, however, it is imperative that the crypto ecosystem replaces the lost banking networks and allows fiat currencies to move between market participants efficiently and securely, and that “it will happen.” This will ensure the stability of the stablecoin,” the report added.

On the other hand, tighter regulation by US authorities may push cryptocurrency market participants toward European and Asian banking networks, the report notes.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Silvergate Bank Headquarters (Will Foxley/CoinDesk)
｜Original: US Banking Crisis Could Present an Opportunity for Some Crypto Exchanges: JPMorgan