As traditional banks like Silicon Valley Bank (SVB), Signature, and Silvergate collapse, crypto companies are quickly turning to decentralized finance (DeFi) and on-chain apps.
Crypto-friendly banks have been crumbling severely, with SVB and Silvergate among the latest to implode, causing a massive stir in the crypto sector. As a result, most Crypto firms are now looking for solace in the world of decentralized finance (DeFi) and on-chain application, based on brokerage company Needham.
With fewer crypto-friendly banks now available, DeFi and on-chain apps have turned into the favorite destination for crypto companies and other operators. DeFi, specifically, offers a wide range of financial services that are not just decentralized but are also trustless. It means that they operate entirely without the need for intermediaries.
It makes DeFi a much more attractive option for crypto companies looking for a more secure and reliable alternative to traditional banking networks.
Buy Crypto NowAs crypto companies turn to DeFi, the biggest crypto exchange in the world, Binance, announced that it would change the remaining $1 billion industry recovery initiative funds from BUSD stablecoin to native crypto, including Ether, Bitcoin, and Binance Coin. The move has caused cryptos to rally in the past 24 hours, with a flight to crypto assets less reliant on the banking infrastructure helping the surge.
