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According to JPMorgan analysts, turbulence in the TradFi (traditional finance) sector has set the stage for some crypto exchanges to increase market share by offering banking services to native cryptocurrency businesses and investors.
They have noted an increase in stablecoin trading volume as cryptocurrencies became more widely used to move financial value. In light of recent developments, Tether (USDT) has managed to strengthen its position, they have added.
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Analysts have also highlighted fintech companies and offshore banks are also trying to fill the void formed after the collapse of Silvergate Bank, SVB and SBNY.
To a lesser extent, crypto firms with diversified partners at TradFi and some exchanges have been affected by the crisis.
JPMorgan has noted that in the long term it is vital for the ecosystem to replace lost banking networks. This is necessary for the efficient and secure transfer of fiat between market participants, "while ensuring the stability of stablecoins."