The U.S. affiliate of global crypto exchange Binance has struggled to find a bank for its customers’ cash after the failure of Signature Bank left it without a key banking partner, people familiar with the matter said.
Users’ dollar deposits were previously sent to either Signature Bank or Silvergate Capital Corp., according to Binance.US’s website. The failures of Signature and Silvergate, both seen as friendly to crypto companies, left many crypto firms rushing to find new banking partners.
As a stopgap, Binance.US is using at least one middleman to store funds on its behalf. Because money is held at the middleman’s banks, it can slow down the process of sending and moving funds, the people said.
The key difficulty for Binance.US is finding a bank to directly hold its customers’ dollars. At crypto exchanges, bank accounts for user deposits and trading are typically separate from those used for corporate operations, such as payroll and one-off expenses.
Source: Binance.US Struggles to Find Bank to Take Its Customers’ Cash – WSJ