Pantera Capital Utilizes Closed Silicon Valley Bank for Custodianship of Private Funds

03/11/2023 23:18 • Metaverse Matters • 90 views

It is reported that according to a regulatory document last month, Pantera Capital, a venture capital and investment giant focusing on cryptocurrency, recently had assets with the closed Silicon Valley Bank (SVB). In the ADV form on February 3, Pantera listed SVB as one of the three custodians of its private funds, and the other two were the custody services of BitGo and Coinbase. After the resignation of Joey Krug, the co-chief investment officer, Pantera reorganized the senior management last month. The company disclosed in January this year that its liquidity token fund lost 80% in 2022.

Pantera, a crypto venture capital company, uses Silicon Valley Bank as its custodian

Analysis based on this information:

Pantera Capital, one of the largest venture capital firms in the cryptocurrency industry, reportedly had assets with the closed Silicon Valley Bank (SVB) for custodianship of its private funds, according to a regulatory document filed last month. In the ADV form on February 3, Pantera listed SVB as one of the three custodians of its private funds, alongside BitGo and Coinbase. However, it is unclear if Pantera still had any assets with SVB at the time the document was filed or if the closure of SVB had any effect on Pantera’s funds.

This news comes after Pantera’s recent senior management reorganization, following the resignation of co-chief investment officer, Joey Krug. The firm also disclosed in January that its liquidity token fund lost 80% of its value in 2022. These two events have impacted Pantera’s position in the cryptocurrency industry and highlight the challenges of investing in a volatile and rapidly changing market.

Custodianship is an essential service for cryptocurrency investments as it provides security for investors’ assets. Custodians hold private keys to investors’ digital wallets and are responsible for securing the assets from theft or loss. Therefore, Pantera’s selection of BitGo, Coinbase, and SVB as its custodians indicates the firm’s confidence in these companies’ abilities to safeguard its assets.

The utilization of SVB as a custodian by Pantera highlights the close relationship between traditional financial institutions and the cryptocurrency industry. While some traditional banks and financial institutions remain skeptical of cryptocurrencies, others, such as SVB, have embraced the industry and offer services to cryptocurrency companies.

In conclusion, Pantera Capital’s choice of SVB as one of its custodians for private funds indicates its trust in traditional financial institutions to provide necessary services for cryptocurrency investments. While recent events have impacted the firm’s position in the market, its choice of custodians remains a crucial aspect of ensuring asset security.

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Pantera Capital Utilizes Closed Silicon Valley Bank for Custodianship of Private Funds

Pantera, a crypto venture capital company, uses Silicon Valley Bank as its custodian

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