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Crypto banks are decentralized platforms that combine the features of exchanges, exchangers and p2p lending services. The main task is to create a service and payment infrastructure for connecting the crypto community with the fiat world. At the same time, there is no talk of an analogue of traditional banks in the world of cryptocurrencies: neither in terms of functionality, nor in terms of principles of operation.
Cryptocurrencies
Main article: Cryptocurrencies
Cryptocurrency exchanges
Main article: Cryptocurrency exchanges
Chronicle
2023: Global Cryptocurrency ATM Market Valued at $181 Million
The volume of the global cryptocurrency ATM market in 2023 reached approximately $181 million. At the same time, the main part of the costs falls on the so-called unidirectional machines. Relevant data are provided in the Fact.MR study, the results of which were released on October 19, 2023.
Unidirectional, or one-way, cryptocurrency ATMs, which are most common, only allow the purchase of cryptocurrency assets. In turn, bidirectional machines also make it possible to sell cryptocurrencies in exchange for cash. According to Fact.MR estimates, in 2022, unidirectional crypto bankers accounted for more than 68% of the total market volume in monetary terms.
From a geographical point of view, the United States remains the leader in terms of introducing cryptocurrency ATMs with a share of about 45% in 2022. The hardware segment accounted for about 75% of all costs in 2022, while bitcoin provided 30% of all revenue.
 | Cryptocurrency ATMs serve as a vital link between existing banking systems and the cryptocurrency world. These machines make it easier for users to enter the cryptocurrency industry and work with digital assets, the study says. |  |
In the future, Fact.MR analysts believe that the global cryptocurrency ATM market will continue to develop rapidly. The Compound Percentage CAGR until 2033 is expected to be at 57%. As a result, by the end of the period under review, the volume of the industry will reach $16.85 billion. Analysts believe crypto bankcomats will remain one of the key elements of the bitcoin ecosystem as the digital asset landscape evolves. At the same time, operators of such installations are interested in supporting other cryptocurrencies.[1]
2022: The largest US crypto banks borrowed more than $13 billion from federal banks
On January 21, 2023, it became known that the US Federal System of Housing Lending Banks (FHLB) provided billions of dollars to the two largest cryptocurrency banks in the country.
According to The Wall Street Journal, cryptocurrency banks Silvergate Capital and Signature Bank were forced to borrow $13 billion from federal banks. It is known that in the fourth quarter of 2022, the FHLB organization provided a loan to the commercial bank Signature Bank for almost $10 billion. This has become one of the largest credit operations of the bank in recent years, the newspaper notes in a publication dated January 21, 2023. In 2018, Signature received approval from the New York City Department of Financial Services for its blockchain-based digital platform. The bank is forced to borrow such a large amount, since the volume of deposits fell from $103 billion to $89 billion. This is the first time in the history of the company when the size of customer deposits decreased at the end of the year.
The second bank to request funds from FHLB was Silvergate Capital: it received at least $3.6 billion. In the fourth quarter of 2022, Silvergate faced a significant outflow of deposits and took measures to improve its financial situation. It is estimated that the net loss attributable to the owners of ordinary shares of the bank during this period amounted to $1 billion. According to the Silvergate report, deposits of digital asset customers in the fourth quarter of 2022 amounted to $7.3 billion, which is significantly lower than the previous quarter, when the figure reached $12 billion.
The industry was heavily impacted by the collapse of the FTX group, it said. Experts note that the cryptocurrency industry is intertwined with the banking system. At the same time, the level of fraud, money laundering and illegal financial transactions is increasing in this area.[2]
Notes
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