Swiss lenders Amina Bank and Sygnum are stepping up their crypto operations. Both hope to fill the gap in crypto payments following the collapse of crypto-friendly US banks about 1.5 years ago.
According to a Bloomberg report, two Swiss banks want to fill the gap left after the closure of Silvergate Exchange Network (SEN) and Signature Bank's Signet platform. These two banks played an important Vai in creating liquidation for the digital currency market before its collapse last March.
According to a Bloomberg report, SEN allowed $117 billion in moves in the quarter before Silvergate's liquidation. At the same time, Signet handled $275.5 billion before the US authorities took over Signature.
The collapse of two financial services companies leaves cryptocurrency players in trouble. The liquidation situation worsened after the failure of the FTX exchange in 2022, and users are still looking for alternatives.
Now, two Swiss banks are XEM to fill that gap with a 24/7 network for instant transactions for both fiat and crypto with no transfer fees between network members.
According to Kok Kee Chong, operator of Singapore-based exchange AsiaNext, this will help digital currency companies “make trades and clear positions faster. This improves market liquidation , as traders can react to market movements in real time without having to wait for settlement.”
According to Bloomberg, filling the instant payments gap has become more urgent for the market as institutional investment has increased, with the launch of ETFs in Australia , Hong Kong and the US.
Chief product officer at Amina Bank Myles Harrison said in an interview that the closure of Silvergate and Signature has left the crypto landscape “ Shard.” This leads to a clear separation between “what is happening in the Northern Hemisphere and the rest of the world”.
She also noted the bank wants to take advantage of the situation and bring back normalcy. Currently, Amina supports instant transactions in Swiss francs, euros and US dollars. The bank is also planning to add more fiat currencies, including in Hong Kong and Singapore.
According to Harrison, the bank has established subsidiaries in these areas. Amina's network will include stablecoins and on-chain payments.
Meanwhile, BCB Group, which operates the Blinc instant payments network for crypto companies, said the platform's Euro and GBP payments increased since last year.
According to Sygnum Bank chief product officer Thomas Eichenberger, the liquidation gap remains a challenge in the cryptocurrency industry. He added that settlement and clearing remain difficult and the gap “has not yet closed to the extent that professional market participants would like”.
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Minh Anh
According to Cryptopolitan
