“US Regulatory Bodies Shut Down Republic First Bank in Philadelphia”
American regulatory bodies have entirely shut down Republic First Bank based in Philadelphia. Following the announcement, Bitcoin, Ethereum, and alternative currencies experienced a slight relief.
The new Federal Bank will practically handle all deposits and acquire Republic Bank’s assets. American regulators have completely closed Republic First Bank and its headquarters in Philadelphia, marking the first bank failure in the country in 2024. This creates divides among those monitoring/investing in cryptocurrency trading. Following the announcement, Bitcoin, Ethereum, and alternative currencies experienced a slight relief.
Bank Failure Spurs Shift Towards Cryptocurrency:
Cryptocurrency trader “Pillage Capital” claimed that the collapse of Republic First Bank is worth watching as bank failures are the best narrative we can get regarding cryptocurrencies. In a post, he said, “Another bank just collapsed, Republic First Bank. Yes… I think I’ll stick with Bitcoin.
On April 26, the Pennsylvania Department of Banking and Securities seized Republic First Bank. This event was followed by the appointment of the Federal Deposit Insurance Corporation (FDIC) as the receiver for the failed bank. According to a statement issued on April 26 by the FDIC, the new Federal Bank will handle almost all deposits and acquire all Republic Bank’s assets.
Republic First Bank’s public balance sheet was built on nearly $6 billion in assets, along with almost $4 billion in total deposits as of January 31. Additionally, Fulton Bank has just completed integration, whether through merger or acquisition. The bank will establish its initial foothold in the area starting next week.
Calls for Self-Banking Services Amid Industry Disruptions:
In 2023, despite the global financial community’s shock upon hearing whispers of possible bank runs, Bitcoin’s short-term price fell slightly, only to rebound after receiving this information.
Within the past hour, Bitcoin has dropped on CoinMarketCap. Ethereum has decreased by 0.58% and is currently trading at $3,095. Alternative currencies saw sharper declines, with Dogecoin dropping by 2.88% and Solana dropping by 1.79% during the same period. FRB-related news comes approximately a year for the banking industry. A report by the FDIC cited the registration of five bank failures in the United States in 2023. Republic First Bank had no relation to First Republic. JPMorgan Slate acquired Republic First Bank in May 2023 after initial recovery efforts were aborted.
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The Federal Reserve decided to close Signature Bank in March 2023. It justified its decision as a “systemic risk” to protect the US economy, signaling its concern about stability and growth.
This event comes directly after regulatory closures. A week ago, Silvergate Bank, which accommodates cryptocurrency industry transactions, announced it would close its operations and enter into voluntary liquidation.
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