4
Banks Warier of Serving Crypto Clients After Blowups, Scrutiny - Slashdot
source link: https://slashdot.org/story/23/03/31/0953235/banks-warier-of-serving-crypto-clients-after-blowups-scrutiny
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Banks Warier of Serving Crypto Clients After Blowups, Scrutiny 5
Posted by msmash
on Friday March 31, 2023 @10:00AM from the how-about-that dept.
US banks, already hesitant to work with crypto customers, are now even warier of providing services to the industry after a string of regional-lender collapses and amid heightened scrutiny by regulators. From a report: The closure of crypto-friendly Silvergate Capital and seizure of Signature Bank has left crypto firms struggling to find new banks for depository and payment services. While there's no blanket ban on serving crypto clients, financial firms are imposing lengthy application procedures, turning away smaller companies and some retail platforms, and in some cases shutting the door on crypto businesses altogether, according to industry participants, investors and bank executives.
Cross River Bank, for example, received requests from more than 100 new clients -- not all of whom were crypto companies -- seeking a safe harbor for their deposits within days of SVB Financial Group's Silicon Valley Bank and Signature collapsing, according to a person with direct knowledge of the bank's business. The closely held company turned down almost all those requests, the person said. Among the few crypto companies that have won over the bank is stablecoin issuer Circle Internet Financial, which expanded a partnership with Cross River, announced after Silicon Valley Bank failed. Earlier this month, lenders that were bidding to buy failed Signature Bank from the Federal Deposit Insurance Corp. specifically asked not to take on the digital-assets business, according to a person familiar with the process. Signature's crypto business was not part of the eventual takeover by New York Community Bancorp, and the FDIC is still seeking to sell Signet, Signature's real-time payments network for crypto firms.
Cross River Bank, for example, received requests from more than 100 new clients -- not all of whom were crypto companies -- seeking a safe harbor for their deposits within days of SVB Financial Group's Silicon Valley Bank and Signature collapsing, according to a person with direct knowledge of the bank's business. The closely held company turned down almost all those requests, the person said. Among the few crypto companies that have won over the bank is stablecoin issuer Circle Internet Financial, which expanded a partnership with Cross River, announced after Silicon Valley Bank failed. Earlier this month, lenders that were bidding to buy failed Signature Bank from the Federal Deposit Insurance Corp. specifically asked not to take on the digital-assets business, according to a person familiar with the process. Signature's crypto business was not part of the eventual takeover by New York Community Bancorp, and the FDIC is still seeking to sell Signet, Signature's real-time payments network for crypto firms.
Recommend
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK