Silvergate Citadel crypto news: Citadel Securities, which already owns stake in the US bank, could come to the rescue of crypto market.
Silvergate Citadel crypto news: Amid all the FUD around potential bankruptcy risk around Silvergate Capital, Citadel Securities, which already owns stake in the US bank, is rumored come to the rescue. It would be a massive relief for the crypto market if this goes on to be true. Although the information is not official yet and highly unlikely, it is rumored that Citadel would pump some capital to rescue the US bank, which is highly important for the crypto ecosystem‘s health in the United States. However, it remains to be seen if the investment would bring out immediate results for the bank.
Silvergate Citadel New Deal In The Making?
According to Andrew on Twitter, Citadel could likely invest more funds to bail Silvergate out of the liquidity crisis. He said the investments would be focused on filling the gaps for Silvergate. The rumors come at a time when the cryptocurrency prices took an instant hit due to the FUD around the Silvergate crisis. Major crypto companies including Coinbase and Microstrategy had already announced cutting ties with the bank, owing to Silvergate’s hints on risks to its ability to operate going forward.
“Internal rumors at Silvergate that Citadel could step up and bail them out; cash infusion where capital shortfalls exist.”
Why It Makes Sense?
Citadel Securities, the world’s largest market maker with presence in over 50 countries, already owns 5.5% stake in Silvergate Bank. Hence, it would only be logical to assume it wants increase its ownership in the bank.
Meanwhile, Bitcoin price is yet to show any signs of recovery after it fell sharply as the news sent negative sentiment across the market. The crypto bloodbath on Thursday came following what came as the biggest negative event for crypto market so far in 2023.
Source : coingape