Crypto VC Digital Currency Group Turns To New Banking Partners After SVB Financial Debacle

  • Crypto conglomerate Digital Currency Group (DCG) is hunting for new banking partners for portfolio companies following the collapse of SVB Financial Group SIVBSilicon Valley Bank, Signature Bank SBNY, and Silvergate Capital Corp SI.
  • SantanderHSBC Holdings, Plc HSBCDeutsche Bank AG DBBankProvBridge BankMercuryMultis, and Series Financial are still keen to connect with crypto firms, CoinDesk reports citing relevant messages.
  • The banking collapses in the U.S. left a lot of crypto firms and tech startups pursuing new banking partners.
  • Also Read: SVB Collapse Could Materially Impact Coinbase's Revenue, Profitability Considering USDC's Criticality To Coinbase, Analyst Says
  • DCG had also reached out to BlackRock, Inc BLKJP Morgan Chase & Co JPM, and Bank Of America Corp BAC.
  • The banks may restrict some services for crypto firms, for instance, brokerage and money market services and the ability to wire money to third parties. 
  • Traditional banks may agree to set up banking accounts for crypto firms subject to restrictions based on crypto exposure.
  • Despite the industry meltdown, Western Alliance and Bridge Bank are still opening accounts for crypto firms. 
  • DCG has also contacted international banks, including Revolut in the U.K., United Overseas Bank (UOB) in Singapore, and Bank Leumi in Israel.
  • On Wednesday, a DCG representative will meet with Senate Banking Committee staff on the fallout from SVB, Signature, and Silvergate.
  • Image by jenniferfgallagher from Pixabay
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