Crypto Group DCG Is Looking for New Banking Partners For Portfolio Companies
Digital Currency Group (DCG), one of world’s largest crypto conglomerate, is on the lookout for new banking partners for its portfolio companies following the recent collapse of three major crypto-friendly banks in the US – Silicon Valley Bank, Signature Bank, and Silvergate Bank. DCG has reportedly reached out to major financial giants such as Santander, HSBC, Deutsche Bank, BlackRock, JPMorgan, and Bank of America.
According to a report by CoinDesk, the banks are still willing to serve crypto clients but will impose certain restrictions on their services. DCG will not be provided with services such as brokerage and money market services, as well as the ability to wire money to third parties.
Despite the share prices of regional banks such as Western Alliance and Bridge Bank falling, they are still open to opening accounts for crypto firms in the US. DCG has also reached out to international banks, including Revolut in the UK, United Overseas Bank (UOB) in Singapore, and Bank Leumi in Israel, to serve their firms.
The recent collapse of crypto-friendly banks in the US, and the recent saga with Circle & USDC has highlighted the need for diversified banking partners for crypto firms. DCG’s efforts to find new banking partners for its portfolio companies are a clear indication of the tough times ahead for the entire crypto industry While some banks are still open to serving crypto firms, the restrictions on their services suggest that there is still a level of caution when it comes to dealing with cryptocurrencies.
Edit: 14th March 2023: Title has been updated
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