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Justin Sun Wants to Help Build Banking Infrastructure That Bridges Gap to Crypto

2 mins
Updated by Kyle Baird
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In Brief

  • Justin Sun showed interest in building a bank that caters to the needs of crypto investors.
  • This follows recent U.S. bank collapses such as Silvergate and Silicon Valley Bank.
  • Binance CEO Changpeng Zhao speculated on a coordinated effort to shut down crypto.
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TRON network founder Justin Sun has offered financial support to anyone building “a reliable bank that can cater to the needs of the crypto industry.”

In a March 12 Twitter thread, Justin Sun said the recent collapse of the Silicon Valley Bank showed the “potential harm caused to many in the industry.”

Justin Sun Open to Bridging Banking Gap With Crypto

Because of this, he is willing to collaborate with anyone building “a robust banking infrastructure that bridges traditional finance and crypto.”

The Huobi global adviser also noted that this bank could be developed locally or abroad. He added that this institution would be pivotal in enabling wider crypto adoption.

Binance CEO Speculates on Crypto-Friendly Banks Collapse

Binance CEO Changpeng ‘CZ’ Zhao speculated that the recent collapse of crypto-friendly banks might be a coordinated effort from the authorities. In recent weeks, crypto-friendly institutions like Silvergate and SVB have collapsed.

Zhao’s speculation is a commonly held view among several stakeholders within the crypto community. Community members also likened the recent wave of heightened scrutiny to “Operation Choke Point 2.0.” This is a reference to President Obama’s “Operation Choke Point.” 

At the time, the U.S. Department of Justice made it difficult for unfavorable businesses like gun vendors to do business with traditional banks. As a result, the financial firms that were servicing these businesses faced obstacles and penalties.

Venture Capitalist Nic Carter wrote that recent events showed a government-led attempt to discourage traditional financial institutions from servicing the crypto industry. Carter also added that regulators clarified that “touching public blockchains in any way is considered unacceptably risky.”

Meanwhile, four U.S. lawmakers have questioned US financial regulators’ recent regulatory moves targeted at the crypto industry. According to the lawmakers, this overreaching behavior could bleed into other legal sectors.

Do Banks Pose Risk to Fiat-Backed Stablecoin?

Several crypto stakeholders have argued that banks threaten the crypto industry. Changpeng Zhao asserted that banks were a risk to fiat-backed stablecoins. He also added that there was a need for more crypto-backed stablecoins.

Cardano founder Charles Hoskinson shared a similar view.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
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