WSJ: Binance.US seeks a new banking partner in the United States

The cryptocurrency exchange Binance.US is seeking a new banking partner in the United States. The firm is in talks with several lenders, but thus far has not succeeded, The Wall Street Journal reports, citing people familiar with the matter.

Previously the platform held clients’ dollar deposits at Signature Bank and Silvergate Bank. The first was bailed out in March 2023, the second was liquidated in the same month.

Against this backdrop, the exchange has faced problems that have not been resolved.

According to WSJ sources, as a temporary measure Binance.US has routed users’ fiat funds through intermediaries, including Prime Trust. The Journal’s sources explained that such a structure slows the transfer of assets.

The report says the platform is in talks with several banking institutions, including Cross River Bank and Customers Bancorp, but has not yet succeeded, as the banks cited regulatory risk concerns.

“We are working with several American banks and payment providers, as well as bringing on new partners, while upgrading our internal systems to create a more stable fiat platform and offer additional services,” said a Binance.US spokesperson in an interview with WSJ.

In March 2023, CFTC accused Binance’s U.S. unit of ‘fictitious’ compliance with US derivatives trading rules.