Banks Santander, HSBC, Deutsche Bank, BankProv, Bridge Bank, Mercury, Multis and Series Financial remain ready to work with digital assets.
SCOOP: Some major banks like @bancosantander, @HSBC and @DeutscheBank are still willing to connect with crypto firms, but may restrict services, according to @DCGco. Reporting by @lavender_au.https://t.co/TRScgu4fd7
— CoinDesk (@CoinDesk) March 14, 2023
According to documents reviewed by CoinDesk, the crypto holding Digital Currency Group (DCG) is trying to find new partners for its portfolio companies against the backdrop of problems Silvergate Bank, Signature Bank and Silicon Valley Bank (SVB).
DCG also approached BlackRock, JPMorgan and Bank of America, but apparently did not receive a satisfactory response. In addition, the holding sent requests to several international banks, including Revolut in the United Kingdom, United Overseas Bank in Singapore and Bank Leumi in Israel.
The documents note that financial institutions may block certain services for crypto companies, such as brokerage services and the ability to transfer money to third parties. The degree of restrictions will depend on the level of vulnerability of the firms.
On March 10, the California Department of Financial Protection and Innovation closed Silicon Valley Bank and appointed the FDIC as receiver. The reasons cited were “insufficient liquidity and insolvency”.
US regulators stated that depositors would have access to their deposits on March 13, funded by shareholders and some holders of unsecured bonds.
On March 11, against the backdrop of the collapse of SVB, the stablecoin USDC and algorithmic “stablecoins” DAI and FRAX lost their peg to the US dollar. The issuer of USD Coin, Circle, assured that it had resolved issues with banking support for the asset.
Earlier this week, Tron founder Justin Sun stated that he was prepared to back the creation of a “reliable bank” for the crypto sector.