First Republic Bank, like many other financial institutions in the US, has recently encountered a liquidity crisis and has sought help from both the banking community and the US Federal Reserve.
In an effort to stay ahead of the curve and cater to the needs of its clients, the bank has collaborated with eToro, an Israeli trading and brokerage company, to provide its clients with services related to crypto assets, including deposits and acquisitions through licensed and regulated exchanges.
According to Forbes magazine, First Republic Bank has been among the top ten largest private banks in the United States for the past four years.
However, the bank has recently experienced massive withdrawals of over $70 billion, leading to a market capitalization drop to $3 billion. This news comes on the heels of the closures of Silicon Valley Bank and Signature Bank.
In an effort to overcome the crisis, the troubled First Republic Bank has turned to financial regulators, the banking community, and consulting company Lazard for assistance.
The bank is considering options such as the sale of assets, reduction of capitalization, or outright sale. To restore depositor confidence, 11 banks have placed over $30 billion in deposits with the bank.
The Federal Reserve System and JPMorgan Chase have also extended additional liquidity to First Republic Bank, although the amount of financial assistance provided has not been disclosed.
Meanwhile, the US Federal Deposit Insurance Corporation (FDIC) has sold Signature Bank to Flagstar Bank, without including the cryptocurrency part of the business. It remains to be seen how the situation at First Republic Bank will evolve in the coming months.