The Block Editor: Crypto capital markets have regressed to pre-2014 levels; How many crypto-friendly banks are left?

Following the recent closures of two well-known crypto-friendly banks, Silvergate and Signature, both the editor-in-chief and research director of the prominent crypto media outlet, The Block, have shared their insights on the relationship between the cryptocurrency industry and banks. So, what other crypto-friendly banks are available for future businesses to provide relevant services?

The Block Editor-in-Chief: Decentralization in the Crypto Industry

"The capital markets in the crypto industry have essentially regressed to pre-2014 levels, where any newly established company has no chance of establishing relationships with banks. In many ways, the crypto industry has officially become decentralized from banks," said The Block Editor-in-Chief, Frank Chaparro.

While Frank holds a rather pessimistic view on the current relationship between the crypto industry and traditional banks, The Block's Research Director Larry Cermak believes that despite the top three banks in the U.S. that used to service crypto companies being eliminated, there are still a few in existence, including:

1. Customers Bank Note: Current banking partner for Circle, with $1 billion in cash reserves
2. First Foundation Bank
3. Cross River Bank Note: Current banking partner for Circle, providing transaction settlement network
4. Sutton Bank
5. Evolve Bank & Trust
6. BankProv
7. Quontic Bank

Circle's recent announcement serves as a prime example, as the Silicon Valley bank's collapse has drawn attention to Circle, which swiftly established a partnership with the new crypto-friendly bank, Cross River Bank, to restore customer minting and redemption of USDC.

However, Larry also noted that the list does not include major banks like JPMorgan Chase and Bank of New York Mellon, as small crypto companies are unable to utilize their services. Whether emerging crypto startups will indeed struggle to establish relationships with banks, as Frank suggested, remains to be observed in the near future.