Billions Worth of Crypto Trades at Risk After Bank Shutdowns (1)

The digital-asset market is coming off of a turbulent year featuring a number of high-profile blowups. Now, three shutdowns in the banking industry — SVB Financial Group’s Silicon Valley Bank, Silvergate Capital Corp. and Signature Bank — have set off a fresh set of stresses.

SVB’s failure triggered a knock-on effect in the crucial market for stablecoins after digital-asset giant Circle Internet Financial Corp., one of the biggest issuers of the widely used tokens known for their perceived safety, revealed it had $3.3 billion of reserves with the bank. The news caused Circle’s token, USD Coin, to ...