<p>GCEX, the digital broker with offerings of forex, contracts for differences (CFDs), and <a href=”https://www.financemagnates.com/terms/c/cryptocurrencies/” class=”terms__main-term” id=”b091101e-6e02-4b36-aa0e-7c972dfdd6ed” target=”_blank”>cryptocurrencies</a>, disclosed on Monday that it has “a very limited exposure” to the now-collapsed Signature Bank. However, the company has no exposure to the two other collapsed US banks, Silvergate Bank and Silicon Valley Bank (SVB).
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GCEX’s Limited Exposure to Signature Bank
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“I… want to confirm that GCEX has no exposure to Silvergate Capital Corporation or to Silicon Valley Bank (SVB). In addition, we have very limited exposure to Signature Bank, where depositors will be made whole – as per the Federal Reserve’s announcement,” GCEX’s Founder and CEO, Lars Holst, wrote in a Linkedin post.
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The confirmation came when an array of companies in technology, crypto, and other <a href=”https://www.financemagnates.com/terms/f/fintech/” class=”terms__secondary-term” id=”891edcf3-475e-45f3-a8b8-3ba2e7d37339″ target=”_blank”>fintech</a> areas disclosed their exposure to the three failed banks in the US. <a href=”https://www.financemagnates.com/tag/gcex/” target=”_blank” rel=”follow”>GCEX became the first company</a> in the forex and CFDs space to confirm its exposure to Signature Bank.
However, Holst did not disclose the amount and nature of its exposure to the failed Signature Bank.
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Established in 2018, GCEX enables brokers, hedge funds, and professional traders to access deep liquidity in FX and digital assets and offers a range of technology solutions. The company is <a href=”https://www.financemagnates.com/executives/moves/gcex-enters-apac-with-new-hong-kong-based-head-of-sales/” target=”_blank” rel=”follow”>expanding aggressively</a> in Europe, the Middle East, and in Asian markets. Initially, it operated with a United Kingdom license and obtained two more regulatory licenses in Denmark.
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Last year, the company <a href=”https://www.financemagnates.com/institutional-forex/gcex-receives-4-million-in-funding-from-tgv4-plus-fund/” target=”_blank” rel=”follow”>received $4 million in funding</a> from True Global Ventures 4 Plus Fund (TGV4 Plus), primarily investing in serial entrepreneurs. GCEX used the capital to grow its global footprint.
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“I am reaching out today to affirm that GCEX has not been impacted by recent events,” Holt added. “GCEX remains financially strong, profitable, and open for business – backed by True Global Ventures.”</p><p>Heavily Exposed Crypto Companies</p><p>The New York regulators confirmed the shuttering of Signature Bank on Sunday, putting it under the receivership of the Federal Deposit Insurance Corporation (FDIC). On top of that, the US federal regulators confirmed that deposits in the bank, FIDC-insured or uninsured, will be protected with a bailout scheme.</p><p><a href=”https://www.financemagnates.com/cryptocurrency/signature-bank-collapse-coinbase-and-paxos-disclose-massive-exposure/” target=”_blank” rel=”follow”>Signature Bank</a> was one of the crypto-friendly banks with a blockchain-based real-time settlement system, which is now terminated. Conbase, Circle, and many other major crypto companies used the settlement system. Additionally, Coinbase and stablecoin issuer Paxos have exposure of $240 million and $250 million, respectively, to Signature Bank. Another Stablecoin issuer, Circle, has a <a href=”https://www.financemagnates.com/cryptocurrency/svb-crisis-circle-escapes-usdc-depeg-with-regulatory-assurance/” target=”_blank” rel=”follow”>$3.3 billion deposit in Silicon Valley Bank</a>, which is the other collapsed lender.
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Meanwhile, HSBC <a href=”https://www.financemagnates.com/institutional-forex/uk-silicon-valley-bank-sold-for-just-one-pound-to-hsbc/” target=”_blank” rel=”follow”>bought the UK subsidiary of the Silicon Valley Bank</a> for a symbolic pound, Finance Magnates recently reported. Moreover, the FCA confirmed that SVBUK, with a loan book of roughly £5.5 billion and around £6.7 billion in deposits, will maintain its regulatory authorization to continue its operations. </p>
This article was written by Arnab Shome at www.financemagnates.com.
