Big banks disgusted by crypto? Not so sure.

Stop or again? – After the misadventures of Silvergate Bankof Signature Bank and some Silicon Valley Bank, we would expect to see banks deserting the cryptocurrency sector. Too risky, too exposed and in the sights of the regulator, there are more shots to take than money to be made! But is this really the case? If we believe some indiscretions collected by American media, some big international names are still interested in crypto. They would also be ready to work with Digital Currency Group who needs new partners. Who ? Beginning of response to follow.


Digital Currency Group looking for new partners

Digital Currency Group (DCG) is a major player in the crypto ecosystem with several globally known companies. Recently we talked a lot about one of them, Genesis. This company is indeed one of the many collateral victims of the bankruptcy of FTX. This has also earned Barry Silbertthe CEO of DCG, a skirmish with the Winklevoss brothers. In the family DCGthere is also Grayscale Investment with its GBTC, the media Coindesk which references in the middle and other companies that revolve around Bitcoin and crypto.

Following recent events and the bankruptcy of three banks specializing in services for crypto companies and start-upsDCG needs new financial partners. silver gate, which acted as an intermediary between traditional finance and crypto exchanges, is bankrupt. There Silicon Valley Bank also just like the Signature Bank. So the group surveyed other banking institutions to find out their positions on the issue.

After the bankruptcies of Silvergate Bank, Signature Bank and Silicon Valley Bank, who will be able to provide the financial services essential to the proper functioning of the crypto sector?  Apparently, many candidates would be interested!
Bankrupt banks will be replaced by others… but which ones?

Big international names always ready to work with crypto companies

And who better to get information closer to the action? Coindesk Of course ! They are the ones who suggested that large banking groups would have positioned themselves favorably with DCG to possibly provide financial services. Big names are even cited by the American media. We find Santander, HSBC, Deutsche Bank, BankProv, Bridge Bank, Mercury, Multis or even Series Financial.

But other behemoths would also have been contacted like BlackRock, JPMorgan or the Bank of America, just that! Exchanges between these institutions and the DCG group suggest that some services would still be boundaries by those banks that would like to commit while preserving. For example, brokerage, money transfer or money market services could be restricted. It would depend on the degree of exposure to the cryptocurrency. Coindesk finally reports that international groups such as Revolut, United Overseas Bank or Bank Leumi have also been canvassed.

In these somewhat troubled times, it is difficult to know exactly what is going on behind the scenes. What is certain is that nature abhors a vacuum and the finance Also. The services formerly provided by banks in bankruptcy must be provided by someone. This may be an opportunity for some to comfort their presence in crypto. For others, it’s a golden opportunity to find a place in the sun. But between a regulations blurred, a volatility extreme and twists and turns Repeatedly, we wish good luck to all the newcomers who will be arriving in the sector today!

Last Verdict

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