Gemini denied the report on JPMorgan Chase ending ties with the exchange. The source of the report is not clear. It was reported by a crypto media agency.
The same news agency revealed the FTX implosion. Also, the agency is a subsidiary of a firm that is embroiled in a legal battle with Gemini.
The spokesperson of San Francisco based exchange Coinbase (COIN) said that JPMorgan’s relationship with Coinbase (COIN) remains unbothered.
On March 9, 2023, Gemini contradicted the report on Twitter: “Despite reporting to the contrary, Gemini’s banking relationship remains intact with JPMorgan.” Crypto analysts believe these types of rumors could affect the relationship between the US banking system and the crypto sector. On 9 March 7.00AM, JPMorgan Chase & Co closed at $137.80, down by 0.17%.
Coinbase and Gemini went through a long process to get approval from JP Morgan. According to the Wall Street Journal, JPMorgan accepted Gemini and Coinbase as customers in early 2020. Coinbase, the San-Francisco-based firm, was founded in 2012 with over 30 million accounts. In 2014 Gemini was founded by twin brothers Tyler Winklevoss and Cameron Winklevoss. It operates in the US, Canada, the UK, South Korea, Hong Kong and Singapore.
The crypto market set off to a great start in January 2023, but the first weekend of March ended with a red streak. The price of crypto assets dropped due to a sudden wave of uncertainty over major crypto banking services provider Silvergate Capital. The leading cryptocurrencies, Bitcoin and Ethereum, slid below the $22,000 and $16,000 marks, respectively.
Recently, actions by banks have affected crypto firms. Silvergate Bank, which served as one of the two major banks for crypto firms, along with Signature Bank, with $114 billion, decided to discontinue its crypto payment network. In a recent post on its website, Silvergate said, “Effective immediately, Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). All other deposit-related services remain operational.”
According to reports, the crypto bank has been facing issues for months. In its fourth-quarter report, the firm lost around $1 billion. Silvergate laid off 40% of its workforce in January. As per CNBC, one of the leading crypto firms like Galaxy Digital and Coinbase is working on ending its relationship with Silvergate. On 9 Mar 8.12 AM, Silvergate Capital (SI) market closed at $4.91, down by 5.76%.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/10/gemini-denies-rumors-of-severance-with-jpmorgan-on-twitter/