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Cryptocurrency prices have soared as investors breathed a sigh of relief that US regulators moved to bolster the US banking system after the collapse of Silicon Valley Bank. cryptocurrency

Bitcoin and ether, the two most widely-traded coins, have surged by a fifth since their lows on Friday as traders were reassured by promises from US authorities that deposits at the failed Silicon Valley and Signature banks would be protected. Bitcoin jumped 6 per cent on Monday alone.

The two banks, along with Silvergate, which also failed last week, were used by crypto companies as the conduit for payments between crypto and sovereign money, and custody of assets.

The rising asset prices are a sharp reversal after months of pressure from US banking regulators, who have been closely examining the links between the world of crypto and the traditional financial system. Authorities have repeatedly warned banks of potential risks associated with holding crypto deposits.

Over the past five years banks such as Signature and Silvergate had sought to woo billions of dollars of deposits from crypto customers, building specialist payment networks to handle conversions from dollars into digital tokens.

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at Cryptocurrency prices have soared as investors breathed a sigh of relief that US regulators moved to bolster the US banking system after the collapse of Silicon Valley Bank.

Bitcoin and ether, the two most widely-traded coins, have surged by a fifth since their lows on Friday as traders were reassured by promises from US authorities that deposits at the failed Silicon Valley and Signature banks would be protected. Bitcoin jumped 6 per cent on Monday alone.

The two banks, along with Silvergate, which also failed last week, were used by crypto companies as the conduit for payments between crypto and sovereign money, and custody of assets.

The rising asset prices are a sharp reversal after months of pressure from US banking regulators, who have been closely examining the links between the world of crypto and the traditional financial system. Authorities have repeatedly warned banks of potential risks associated with holding crypto deposits.

Over the past five years banks such as Signature and Silvergate had sought to woo billions of dollars of deposits from crypto customers, building specialist payment networks to handle conversions from dollars into digital tokens.