Within 11 days in March, four banks in the United States and one in Switzerland collapsed. First Republic Bank (OTC:) followed in May. Three of the four largest-ever U.S. bank failures occurred in those two months. It was a painful reminder that banks bear significant risks that can quickly spill over to other industries.
Ironically, despite a heavy focus on how the crypto-asset sector could introduce risks to traditional finance, we instead experienced bank failures becoming a critical stability risk to the crypto-asset industry.
Patrick Hansen is the director of EU strategy and policy at Circle. He was previously head of strategy and business development at crypto-wallet startup Unstoppable Finance, and head of blockchain policy at Bitkom, Europe’s largest tech trade association. He holds master’s degrees in business and political science.
This story originally appeared on Investing
