According to a research report by Bernstein, the recent collapse of multiple banks has shaken the financial markets and provided an opportunity for decentralized financial systems, including cryptocurrencies, to emerge as an alternative.
The report highlights that the collapse of Silvergate Bank, Silicon Valley Bank, and Signature Bank was due to a "generic banking problem," and crypto is not to blame. As outside money is forced to participate, the report suggests that institutional and crypto funds have been bystanders, and the recent price moves were driven by "crypto native money."
The report also notes that while the banking on-ramp to crypto may be weaker in the U.S, it continues to be stable internationally, with access through over-the-counter hubs in Asia and Europe. The OTC trading is done directly between two parties without the supervision of an exchange. The report further adds that OTC hubs in the U.S. are working without interruption.