US Banking Collapse: Cryptocurrency will be offered by HSBC, Santander and Deutsche Bank in Europe


  • After the fall of three crypto-friendly banks, Digital Currency Group is looking outside.
  • European banks are ready to serve crypto companies suffering from bank failures in the United States
  • Receiving banks in Europe said there would be some restrictions.

Cryptocurrency companies that rely on banking infrastructure in the United States have been hit by three quick hits since last week. The collapse of Silvergate, Silicon Valley Bank (SVB), and Signature has wiped out major crypto-friendly banks, leaving critical crypto institutions stranded.

Crypto conglomerate Digital Currency Group (DCG) is looking for new banking partners and is looking to find options across the pond in Europe. Santander, HSBC, and Deutsche Bank are still willing to approach crypto firms CoinDesk mentioned.

DCG’s efforts to find landing points for the crypto business come from bank failures in the US, while the closure of the three banks does not appear to affect depositors in the US. Coinbase and CircleTwo companies that used these banks – there will be long-term repercussions.

The grass is greener elsewhere

A sudden reduction in the number of banking partners could push companies away from the US, especially as major crypto institutions face harsh regulatory conditions. Ripple CEO Brad Garlinghouse She even announced the continued exodus of cryptocurrencies abroad.

Santander, HSBC, and Deutsche Bank are all European banks. Exposure to these banks would allow crypto firms to tap into new, willing banking partners and allow them to operate within regulated legal frameworks.

The EU Crypto Framework Markets in Crypto Assets (MiCA) is a significant milestone semen To open specific pathways for banks to have exposure to crypto assets. Meanwhile, in the United Kingdom, where HSBC is headquartered, regulations are being worked out written To make it a crypto-friendly hub.

Restrictions apply

However, while the European banking giants are willing to serve crypto firms, they have also stipulated that there will be restrictions. According to a note to DCG, some financial services will not be available.

For example, brokerage services, money market services and the ability to transfer funds to third parties will not be freely available. Additionally, while banks may be willing to set up accounts for crypto companies, they will set limits based on the level of exposure to cryptocurrencies.

The future of crypto banking remains to be seen as DCG also says it has reached out to BlackRock, JPMorgan and Bank of America to learn about their appetite for banking cryptocurrency. Still waiting to receive a response.

on the flip side

  • Other US banks, Western Alliance and Bridge Bank, say they are still opening accounts for crypto firms. However, they are facing a huge drop in share price amidst the ongoing banking meltdown.
  • HSBC Buyer UK arm of Silicon Valley Bank (SVB UK) for £1 to keep the branch afloat.

Why should you bother

Cryptocurrency companies in the US are facing some factors that are pushing them away from their current base. Regulations are being chastised by the CEOs of Coinbase, Circle, and Ripple, and now those companies are stuck in a banking meltdown without many other US banking options left. On the other hand, European banks are welcoming, and the regulations are much clearer.

Read more about the impact of bank closures on cryptocurrency:
Will troubled crypto bank Silvergate follow in FTX’s footsteps?

Read more about how to leave cryptocurrency unbanked in the US:
Cryptocurrency Banking Canceled: Impact of Signature, Silvergate, and Silicon Valley Bank Collapses





Source link

Related Posts

Precaliga