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From Collapse to Reinvention: The Emergence of a Decentralized Crypto Banking Ecosystem

BNN Bloomberg | Yueqi Yang, Suvashree Ghosh and Emily Nicolle | Jun 9, 2023

Unsplash Bastian Riccardi crypto payments and banking - From Collapse to Reinvention:  The Emergence of a Decentralized Crypto Banking Ecosystem

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After the collapse of Silvergate Capital Corp. and Signature Bank, which previously catered to crypto companies, a new banking landscape is emerging due to the regulatory crackdown in the US.

  • The new banking system for crypto companies is fragmented and less US-centric.
  • Crypto firms are now turning to smaller regional banks in the US, as well as Swiss and Asian banks, for opening accounts.
  • In the UK, companies are resorting to payment-service providers. The diversification of banking-service providers implies that the new system may be more resilient even though it is less seamless.

New Emerging Crypto Banking Landscape

RegionBankSummary
USCustomers BancorpBased in Pennsylvania, it launched a real-time payments platform in late 2021. It caters to trading firms, exchanges, and institutional investors.
USCross RiverNew Jersey-based, offers banking services to crypto firms like Coinbase and Circle, provides real-time money movement with a $1 million limit per transaction.
USWestern AlliancePhoenix-based, has a blockchain and digital-assets team, offers real-time payments capability powered by Tassat.
USAxos FinancialLas Vegas-based, opens bank accounts for some crypto firms, had plans for retail crypto trading and launching a stablecoin which are now on hold.
USFV BankRegistered in Puerto Rico, offers digital-asset custody service allowing clients to hold Bitcoin and US dollars within the same bank account.
AsiaStandard CharteredProvides banking services to a select group of digital-asset service providers in Singapore, Hong Kong, and the United Arab Emirates.
AsiaDBSSingapore’s biggest bank, offers deposit accounts to regulated digital-asset and blockchain firms, provides on- and off-ramping through its DBS Digital Exchange platform.
AsiaZA BankHong Kong’s biggest virtual bank, plans to offer token-to-fiat currency conversions over licensed exchanges, provides account services to the digital sector.
Europe, UKBCB GroupLondon-based, offers access to its payment network, Blinc, for digital-asset outfits, similar to Silvergate's SEN, also provides business accounts, digital-asset custody and treasury services.
Europe, UKBank FrickLiechtenstein-based, offers banking services including business accounts for blockchain and cryptocurrency sectors, trading and custody of select tokens.
Europe, UKSEBA BankSwiss firm, provides access to trading, investments in structured products, custody, and borrowing for digital and traditional assets.
Europe, UKSygnum BankOperates in Switzerland and Singapore, specializes in digital assets, offering custody, brokerage, tokenization, asset-management, lending, and business-banking services.
Europe, UKClear JunctionPayment-services provider, offers financial institutions including cryptocurrency companies access to UK accounts, virtual international bank account numbers, payment networks, currency exchange and electronic wallets.

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NCFA Jan 2018 resize - From Collapse to Reinvention:  The Emergence of a Decentralized Crypto Banking EcosystemThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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