Crypto Group DCG is looking for new wallet firm partners amid SVB collapse

© Reuters. A police officer controls access to a Silicon Valley bank branch in Wellesley, Massachusetts, US, March 13, 2023. REUTERS/Brian Snyder

(Reuters) – Crypto Group’s (DCG) digital currency group is looking for new banking partners for portfolio companies in the wake of the Silicon Valley bank collapse, signature bank (NASDAQ:) and Silvergate, CoinDesk reported on Tuesday, citing messages seen by the outlet.

Santander (BME:), HSBC and Deutsche Bank CoinDesk said the (ETR:) company remains willing to reach out to crypto firms, after recent banking failures in the US left crypto firms and tech startups stranded and searching for new banking partners.

The report added that DCG has also reached out to BlackRock (NYSE:), JPMorgan (NYSE: NYSE), and Bank of America (NYSE: ). DCG is the parent company of CoinDesk.

The companies did not immediately respond to Reuters requests for comment on the report.

Banks may restrict some services for crypto firms, such as brokerage, money market services, and the ability to transfer funds to third parties, according to messages seen by CoinDesk.

The report added that traditional banks may set up bank accounts for crypto firms, but they will impose limits on the level of exposure to cryptocurrencies.

The collapse of a Silicon Valley bank last week sent shockwaves through the banking sector, as US regional banks face mounting pressure and industry managers and advisors say they may have to look for a savior if the collapse in their stocks does not abate.

(This story has been corrected to say that DCG is looking for banking partners for its portfolio companies, not the group, in the headline)

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