And what do you think, know about the crypto exchanges, coin issuers?
My experience, most of the companies are tied to 1-2 banks. I never worked for a really big, international one, what had more. And crypto market is still not that big.
Based on Circle (USDC) and the few exchanges I checked, I assume, that's the situation in most case. They tied to 1-2 banks. However, I can't find exact bank names and amounts.
Anyway, it's ironic, that I worry to lose my crypto because of banks, monetary system... :) :) :)
Aye, scale matters. Our company works with one bank only since the money is always in motion, we're not accumulating much, and it makes no sense to split what you are going to spend anyway. Any loss would be the worth of a few days of income. Which is bad enough, sure. Still, in the case of SVB, I read or heard about companies keeping half a billion in one place where only about 250 k are insured. Which is just laziness that turned out bad.
Only crypto on the blockchain is protected by the blockchain. Long term, it should not be tied to the fate of the banks it seeks to replace. Currently, though, we still transact in fiat. Crypto transactions are a small, next to none, percentage of what matters to the everyday dude, dudette, or dudity.
I have found out just recently, this 250k insurance thing, basically nothing else, just PR stuff, illusion to the people, that their small money is insured. The FDIC has 1,35% of the total under 250k$ deposits in its fund, so basically it's nothing. How I see, before 2008 even this did not exist. (So they can pay 1 out of 75 under 250k deposits from the fund... :) :) :) how can they call it insurance...) I try to find out what about Europe and rest of the world, nothing for sure, but it looks even worse.
When I wrote it, I meant two things, 1., a coin goes zero, so doesnt matter where you store (how it is still a possible outcome in USDC case) 2., the market will crush because of exchange failures, so I lose value, again: doesnt matter where i store (how it happened in the FTX case).