FINANCE

Which banks are still crypto-friendly? Santander, HSBC, Deutsche, and many other banks are still embracing cryptocurrencies.

share
Which banks are still crypto-friendly? Santander, HSBC, Deutsche, and many other banks are still embracing cryptocurrencies.

Silvergate, Silicon Valley Bank (SVB), and Signature Bank are experiencing a liquidity crisis, which has a significant impact on the cash flow of cryptocurrency companies. USDC was temporarily unpegged due to liquidity issues. Despite assurances, several exchanges, including Binance, have suspended USD wire transfers and are seeking new banking partners.

Some Banks Still Willing to Serve

The U.S. cryptocurrency group DCG's media outlet CoinDesk revealed that the following banks are still willing to engage with crypto companies:

CoinDesk added that Bridge Bank and Western Alliance's branches are still able to open accounts for crypto companies, but it is worth noting that Western Alliance's stock has dropped by over 60% in the past month.

According to DCG's experience, traditional banks' services to crypto companies may be limited, such as brokerage and currency market services, as well as the ability to wire funds to third parties; however, it will depend on the level of exposure to cryptocurrencies.

In addition, DCG has also engaged with large banks such as BlackRock, JPMorgan, and Bank of America, and overseas banks including Revolut in the UK, United Overseas Bank UOB in Singapore, and Bank Leumi in Israel, but did not specify their stance.

Biden Administration: Strengthening Bank Oversight

In response to recent events, Biden stated that deposits of the American people and businesses will be available when needed, and also expressed the intention to strengthen oversight of large banks.

He said, "From the Obama to the Biden administration, strict requirements were imposed on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank Consumer Protection Act, to ensure that the 2008 financial crisis does not recur. I will ask Congress and banking regulators to enhance oversight of banks to reduce the possibility of bank failures recurring."

In January, the White House had previously stated that regulatory agencies are enforcing laws at the appropriate time and providing guidance. This month, banking institutions also issued joint guidelines to isolate digital asset risks from the banking system.

Biden Administration's Cryptocurrency Risk Plan: Priorities for Cryptocurrency Development to be Announced in a Few Months