The collapse of Silicon Valley Bank spurred demand for crypto applications

The collapse of the California bank Silicon Valley Bank led to a 15% increase in downloads of mobile applications of cryptocurrency exchanges and wallets. About it informs TechCrunch with reference to data from Apptopia monitoring service.

According to the publication, as the shares of SVB bank fell by 60%, the volume of downloads of crypto applications grew rapidly. Among the most popular were Coinbase, Crypto.com, KuCoin, Blockchain.com, Kraken, eToro, Binance, as well as BitPay and Trust Wallet wallet services.

Source: techcrunch.com

At the same time, app downloads for the top 10 traditional banks Capital One, Chase, Bank of America, Wells Fargo, Discover, Citi and US Bank fell 5%. Mobile app downloads of the top 10 digital banks Chime, Dave, Albert, Empower, Varo, MoneyLion, Current, Aspiration, Sable and Oxygen sank 3%. Which marketplaces the sample was taken from is not specified.

Recall, on Friday, March 10, the California Department of Financial Protection and Innovation announced the reorganization of the local Silicon Valley Bank. The financial regulator said it made the decision due to insufficient liquidity and the insolvency of the bank. The US Federal Deposit Insurance Corporation has been appointed as the SVB’s manager. The bank had $209 billion under management at the end of 2022. How much the bank had left as of March 2023 is unclear.

• A week before the bank closed, parent company SVB Financial Group announced an emergency sale of $21 billion in Treasury securities as well as mortgage-backed bonds. The company said it made the decision due to a rapid outflow of client deposits.
• Before the reorganization, SVB initially hoped to enlist the support of investors in the amount of $2.2 billion. However, as Bloomberg found out, the bank was unable to attract investments and was trying to quickly find a buyer.
• After the collapse of Silicon Valley Bank, another bank, Signature Bank, closed. At the time of writing, only three banks collapsed in the US in March alone: ​​Silvergate Bank, SVB and Signature.