• Traditional banks are becoming more cautious about providing services to the cryptocurrency industry.
• Smaller regional banks and alternative payment service providers have stepped up to fill the gap.
• Banks such as Customers Bancorp, Cross River Bank, Western Alliance Bancorp, Axos Financial, Standard Chartered, DBS Group, and ZA Bank offer banking services to crypto-related companies.
Traditional Banks Step Back from Crypto Banking
Traditional banks are becoming increasingly cautious when it comes to servicing the cryptocurrency industry. This has led to a greater need for smaller regional banks and alternative payment service providers to step in and fill the gap.
US Banks Providing Services for Crypto Companies
In the US, Customers Bancorp is one of the most popular choices among crypto companies due to its real-time payment platform which supports the settlement of US dollar transfers underlying cryptocurrency transactions. Other US lenders that have provided banking services include Cross River Bank, Western Alliance Bancorp, and Axos Financial.
Collapse of Silvergate & Signature Bank Prompts Scramble
The collapse of some crypto-friendly banks such as Silvergate and Signature Bank has caused increased scrutiny of other financial institutions providing services to crypto firms. This has led many cryptocurrency companies to scramble for different banking alternatives, resulting in a more fragmented global banking landscape with multiple players filling the void left by traditional lenders.
Crypto-Friendly Banks Around The World
In Asia, Standard Chartered provides banking services in Singapore, Hong Kong and UAE while DBS Group offers deposit accounts to regulated digital asset firms in Hong Kong. Liechtenstein-based Bank Frick & Co., meanwhile offers banking services in Europe while ZA Bank plans on offering token-to-fiat currency conversions over licensed exchanges as well as account services in Hong Kong.
As traditional banks become more reluctant with regards to servicing the crypto industry due to regulatory issues or fear of contagion, alternative players have stepped up from various parts of the world including Europe and Asia as well as from within US borders in order provide much needed support for this rapidly growing sector.