Despite the collapse of several banks serving cryptocurrency companies, such as Silicon Valley Bank (SVB) and Signature Bank, there are still banks in the market that are interested in working with cryptocurrency companies. The list includes giants such as Santander, HSBC, Deutsche Bank (DB), BankProv, Bridge Bank, Mercury, Multis and Series Financial.
The information comes from CoinDesk, which looked at news from cryptocurrency group Digital Currency Group (DCG) and the banks. The group is trying to find a new banking partner for its firm following the collapse of SVB, Signature and Silvergate.
Banks Can Still Serve Cryptocurrency Businesses
DCG, which controls CoinDesk, also reportedly contacted BlackRock, JPMorgan and Bank of America.
In addition, the group has approached international banks, including Britain’s Revolut, Singapore’s United Overseas Bank (UOB) and Israel’s Bank Leumi.
According to the news, banks may restrict certain services of cryptocurrency companies, such as brokerage and money market services, and limit the ability to transfer funds to third parties.
Traditional banks may be willing to open bank accounts for cryptocurrency companies. However, they set limits based on exposure to encryption.
DCG representatives will meet with Senate Banking Committee staff next Wednesday (15th) to discuss the ramifications of closing SVB, Signature and Silvergate.
US banking crisis
As CriptoFácil follows, the US banking crisis that is affecting the whole world begins on Friday. The collapse of Silicon Valley Bank (SVB) last week sent USDC prices down. This is because Circle, which issues the stablecoin, has an exposure of $3.3 billion (R$20.7 billion) to SVB. The Silicon Valley Bank collapse was the second-largest in the country’s history.
Back on the 12th, the New York Department of Financial Services shut down the crypto-supporting bank Signature Bank. According to the regulator, there is a high risk that the Silvergate and SVB cases will spread across the banking system. To prevent a general collapse, the Treasury ordered Signature to be liquidated.
Source of information: Compiled from CRIPTOFACIL by 0x Information.Copyright belongs to the author Lorena Amaro, without permission, may not be reproduced