Cryptocurrency Gets Support From Top Global Banks

Despite the fall of three crypto-friendly banks, Silvergate Bank, Signature Bank and Silicon Valley Bank, reports have shown a number of top global banks are still interested in working with crypto firms. Some of these top global banks include JPMorgan and Bank of America.

According to the report which was published by CoinDesk following the collapse of Silicon Valley Bank, Sivergate Bank and Signature Bank, many crypto firms have started looking for new banking partners. 

Using the Digital Currency Group (DCG) platform, crypto exchanges have already made contact with BlackRock, JPMorgan and Bank of America. 

While talks are still ongoing, there are reports that the new banks may however restrict some services for crypto firms, for instance, brokerage and money market services and the ability to wire money to third parties.

Some of these crypto firms are also looking beyond the shores of the United States for banking partners with Switzerland and Asia on the radar. These partners include Revolut in the U.K., United Overseas Bank (UOB) in Singapore, and Bank Leumi in Israel.

On the alternative, some crypto exchanges are also considering launching their own banking facilities, a development experts believe will receive stern responses from regulators.

Investors King understands that the closures of Silvergate, SVB, and Signature bank create a huge gap in the market for crypto-friendly banking, leaving the industry in the cold. 

Before the fallout, Silvergate and Signature banks have been providing banking services for most of the cryptocurrency exchanges while Silicon Valley Bank had a lot of crypto startups and VCs as customers.

Investors King earlier reported how Silvergate Bank, a central lender to the crypto industry winded down its operation due to issues relating to liquidity. 

Meanwhile, the representatives of the Digital Currency Group (DCG) are billed to meet with Senate Banking Committee on Wednesday (today) to discuss issues relating to the fallout from SVB, Signature, and Silvergate bank. The discussions between both parties could form a new capital market legislation in the United States.