It’s trendy to compare the recent troubles at the cryptocurrency exchange FTX with Lehman Brothers’ legendary fall, which sent shock waves across the financial services sector in 2008 and helped spark a systemic crisis.
But bankers who have been developing and offering services for cryptocurrency investors and crypto businesses describe FTX’s bankruptcy as a more isolated event.
And some bank executives actually see a silver lining: Investors and crypto businesses are likely to want to work with more heavily regulated players like banks, they say.
“At one level, this is nothing new,” said Brad Scrivner, CEO of Vast Bank in Tulsa, Oklahoma. “Companies in multiple industries in many different time frames have had liquidity issues and concentration issues, and things like this happen. This is one of the reasons that high-net-worth people and institutions want to see a highly regulated, national-bank custodian like Vast.”
Scrivner cited a survey of 2,000 consumers that The Ascent, a Motley Fool company, released in June. It found that 62% would consider buying more crypto if they could…