Pantera Capital Is The Most Recent Investment In Silicon Valley Bank

Key Points:

• Pantera Capital recently had assets in Silicon Valley Bank, according to a regulatory report made last month (SVB).
• Pantera named SVB as one of three custodians for its private assets, the others being BitGo and cryptocurrency exchange Coinbase.

Pantera Capital, a crypto-focused venture capital and investment firm, reportedly had assets with the now-defunct Silicon Valley Bank (SVB), according to a regulatory filing last month.

Pantera Capital recently had assets in Silicon Valley Bank, according to a regulatory report made last month (SVB). Pantera cited SVB as one of three custodians for its private assets in a Feb. 3 ADV filing, the others being BitGo and crypto exchange Coinbase. With the retirement of co-chief investment officer Joey Krug, Pantera restructured its management positions last month. In January, the company warned that its liquidity token fund will lose 80% of its value by 2022.

Silicon Valley Bank displayed symptoms of liquidity deficit earlier this week, forcing it to sell securities at a loss and issue new shares in order to obtain more funds, but it was unsuccessful. The California State Financial Conduct Authority (CSFCA) and the Federal Deposit Insurance Corporation (FDIC) were obliged to act, closing institutions and seizing assets. The FDIC indicated that insured clients would be able to withdraw next Monday, but uninsured depositors will have to wait for the bank’s assets to be liquidated.

The impact of the aforementioned occurrence has yet to be properly evaluated, owing to the danger of a spillover effect for other big banks, as well as people and companies depositing money with Silicon Valley Bank. Observers are particularly concerned about the idea of crypto firms holding money above, because Silicon Valley Bank is a brand synonymous with providing services to the world’s technology startups and investment funds. Silicon Valley is the United States’ technological and development center.

Binance exchange, stablecoin firm Paxos, stablecoin company Tether, and exchange Bybit announced late on March 10 and early on March 11, that they were not linked with Silicon Valley Bank or Silvergate Bank, a “friendly” bank crypto” that also ceased operating last week. Meanwhile, the insolvent cryptocurrency business BlockFi acknowledged to having $227 million in its bank account.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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