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About a month or so ago, Silicon Valley Bank (often known as SVB) went kaput and crashed, and many analysts said it was one of the biggest financial collapses to happen in America since the days of 2008 and the Great Recession.
Silicon Valley Bank Has Gone Under
During that time, as we all remember, banks like Washington Mutual either collapsed into a heaping pile of ash and brimstone or were bought out by larger monetary firms such as Chase Bank. In any case, Silicon Valley Bank has a lot of people worried given it’s now the second bank to crumble over the course of just the past few weeks, the first being Silvergate Bank. That institution was a popular crypto-friendly bank that gave lots of money to digital currency and technology startups in the past.
There are many crypto firms out there that are looking to potentially come to the rescue of Silicon Valley Bank. While nothing is set in stone yet, there appear to be several digital currency enterprises that are commenting on the probability of either buying Silicon Valley Bank and helping it retain its footing, or at least buying its debt. Either way, these two routes should give the institution a second chance.
One of the people contemplating a purchase of the bank is Changpeng Zhao, the man behind Binance. As the largest and most popular digital currency exchange in the world, Binance has the power, financials, and energy to make Silicon Valley Bank a definitive new division of itself. The only question now is whether Zhao’s comments move into the “action” department.
In a recent string of social media posts, Zhao said:
Is it time yet? Not sure. There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things. We want to be the bridge between crypto and the traditional financial world.
Zhao isn’t the only one looking into the possibility of buying the bank. Elon Musk – the South African billionaire entrepreneur behind mega companies such as Tesla, SpaceX, and now Twitter – said he was open to purchasing the bank and that he would potentially make it a special division of Twitter, thus turning the social media platform into a financial one of sorts.
Will Elon Musk Make a Move?
His words were in response to a comment from Min-Liang Tan, the chief executive of gaming computer company Razor. Tan stated in a recent post:
I think Twitter should buy SVB and become a digital bank.
It appears Musk isn’t against the suggestion, though neither he nor Zhao – at the time of writing – have given clear indications of how they plan to purchase the bank should either one of them decide to move forward with the plan.