Digital Currency Group Searches For A Lifeline As SVB And Crypto-Friendly Banks Collapse

Zinger Key Points
  • Banks are still willing to connect with crypto firms, with restrictions.
  • DCG has international banking partnerships with Revolut, UOB, and Bank Leumi.

Prominent crypto conglomerate Digital Currency Group (DCG) is seeking to secure new banking partners for its portfolio companies in the aftermath of the recent collapses of Silicon Valley Bank SIVB, Signature Bank, and Silvergate Capital Corp SI.

Coindesk reported that several banks, including Santander SAN, HSBC HSBC, Deutsche Bank DB, BankProv, Bridge Bank, Mercury, Multis, and Series Financial, are eager to forge links with crypto firms.

To expand its options, DCG has also approached BlackRock BLK, JPMorgan JPM, and Bank of America BAC for banking support.

The report states that while traditional banks are willing to set up banking accounts for cryptocurrency firms, they may impose some restrictions, such as limiting certain services like brokerage and money market services, as well as wire transfers to third parties, based on the level of exposure to crypto assets.

Also read: Binance Suspends UK Withdrawals And Deposits: What You Need To Know

DCG is also exploring international banking partnerships with entities such as Revolut in the U.K., United Overseas Bank (UOB) in Singapore, and Bank Leumi in Israel.

In response to the situation, a DCG representative will meet with Senate Banking Committee staff to discuss the fallout from SVB, Signature, and Silvergate.

Next: TerraUSD Creator Under Investigation: Criminal Charges In the US Loom

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsPenny StocksMarketsBank LeumiBankProvBridge Bankcrypto assetsCrypto firmsDigital Currency Group (DCG)MercuryMultisRevolutSenate Banking Committee stafftraditional banksUnited Overseas Bank (UOB)
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!