- Santander, Deutsche Bank, HSBC, Mercury, Multis remain willing to serve crypto clients
- They might place account limitations according to the level of crypto exposure
Digital Currency Group (DCG), a world-leading crypto conglomerate and the parent company of CoinDesk, is seeking new bank processing partners for portfolio clients after Silvergate, Silicon Valley Bank, and Signature Bank collapsed.
Major banks like Santander, Deutsche Bank, HSBC, Bridge Bank, Series Financial, BankProv, Mercury, and Multis remain willing to serve crypto clients.
After the failures of the three major banks, many crypto companies and tech startups are looking for new processing partners.
Restricted services
Some of the banks DCG approached said they would limit services for crypto companies, such as wire transfers to third parties, money market services, and brokerage services. Conventional banks will open new accounts for crypto clients, but will place limitations according to the level of crypto exposure.
Despite market volatility, Bridge Bank and Western Alliance continue to open accounts for crypto companies.
Biden calls for stricter rules
US President Joe Biden stated he would appeal to legislators and financial regulators to make the rules for financial institutions stricter after Signature Bank and Silicon Valley Bank failed. On March 13, he commented that the 2010 Dodd-Frank Act, which Barack Obama signed into law, had created solid requirements for banks, but Donald Trump weakened them.
On March 12, the FDIC, Federal Reserve, and Treasury Departmentannouncedthey would make sure depositors got all their money back.
The two biggest collapses in history
Silicon Valley Bank and Signature Bank were two of the biggest bank failures in US history with $209 billion resp. $110 billion in assets. The biggest collapse was 2008’s Washington Mutual Bank.
Biden vowed no one was “above the law” in his administration, adding:
We must get the full accounting of what happened and why those responsible can be held accountable. We must reduce the risk of this happening again. During the Obama-Biden administration, we put in place tough requirements on banks, like Silicon Valley Bank and Signature Bank, including the Dodd-Frank law to make sure that the crisis we saw in 2008 would not happen again.
