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From Collapse to Reinvention: The Emergence of a Decentralized Crypto Banking Ecosystem
BNN Bloomberg | | Jun 9, 2023
Image: Unsplash/Bastian Riccardi
After the collapse of Silvergate Capital Corp. and Signature Bank, which previously catered to crypto companies, a new banking landscape is emerging due to the regulatory crackdown in the US.
- The new banking system for crypto companies is fragmented and less US-centric.
- Crypto firms are now turning to smaller regional banks in the US, as well as Swiss and Asian banks, for opening accounts.
- In the UK, companies are resorting to payment-service providers. The diversification of banking-service providers implies that the new system may be more resilient even though it is less seamless.
Interview with FV Bank CEO at FFCON23: Rebuilding Trust in Web3: The Role of Custodians and Banks
New Emerging Crypto Banking Landscape
| Region | Bank | Summary |
|---|---|---|
| US | Customers Bancorp | Based in Pennsylvania, it launched a real-time payments platform in late 2021. It caters to trading firms, exchanges, and institutional investors. |
| US | Cross River | New Jersey-based, offers banking services to crypto firms like Coinbase and Circle, provides real-time money movement with a $1 million limit per transaction. |
| US | Western Alliance | Phoenix-based, has a blockchain and digital-assets team, offers real-time payments capability powered by Tassat. |
| US | Axos Financial | Las Vegas-based, opens bank accounts for some crypto firms, had plans for retail crypto trading and launching a stablecoin which are now on hold. |
| US | FV Bank | Registered in Puerto Rico, offers digital-asset custody service allowing clients to hold Bitcoin and US dollars within the same bank account. |
| Asia | Standard Chartered | Provides banking services to a select group of digital-asset service providers in Singapore, Hong Kong, and the United Arab Emirates. |
| Asia | DBS | Singapore’s biggest bank, offers deposit accounts to regulated digital-asset and blockchain firms, provides on- and off-ramping through its DBS Digital Exchange platform. |
| Asia | ZA Bank | Hong Kong’s biggest virtual bank, plans to offer token-to-fiat currency conversions over licensed exchanges, provides account services to the digital sector. |
| Europe, UK | BCB Group | London-based, offers access to its payment network, Blinc, for digital-asset outfits, similar to Silvergate's SEN, also provides business accounts, digital-asset custody and treasury services. |
| Europe, UK | Bank Frick | Liechtenstein-based, offers banking services including business accounts for blockchain and cryptocurrency sectors, trading and custody of select tokens. |
| Europe, UK | SEBA Bank | Swiss firm, provides access to trading, investments in structured products, custody, and borrowing for digital and traditional assets. |
| Europe, UK | Sygnum Bank | Operates in Switzerland and Singapore, specializes in digital assets, offering custody, brokerage, tokenization, asset-management, lending, and business-banking services. |
| Europe, UK | Clear Junction | Payment-services provider, offers financial institutions including cryptocurrency companies access to UK accounts, virtual international bank account numbers, payment networks, currency exchange and electronic wallets. |
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