Crypto Banking: Traditional Banks Step Back, New Players Step Up

• Traditional banks are becoming more cautious about servicing the cryptocurrency industry.
• Smaller regional banks and alternative payment service providers are stepping up to fill the gap.
• Banking landscape has become more fragmented and global, providing a more resilient system for crypto companies.

Traditional Banks Step Back

With traditional banks becoming more cautious about servicing the cryptocurrency industry, smaller regional banks and alternative payment service providers are stepping up to fill the gap. In the US, Customers Bancorp, a Pennsylvania-based lender, has launched a real-time payment platform to provide support for settlements of US dollar transfers underlying cryptocurrency transactions. Other US lenders that have provided banking services include Cross River Bank, Western Alliance Bancorp, and Axos Financial.

Collapse of Crypto-Friendly Banks

The change in banking landscape came after the collapse of some crypto-friendly banks led to increased scrutiny of those providing services to crypto companies. Silvergate Bank announced its liquidation on March 8 and Silicon Vally Bank suffered from a bank run just two days after that. On March 12th, Signature Bank was shut down by federal regulators due to fears of contagion – leading to panic among cryptocurrency firms as they scrambled to find other banking alternatives.

Crypto-Friendly Banks in Asia

In Asia, Standard Chartered provides banking services to digital asset service providers in Singapore, Hong Kong, and UAE; while DBS Group offers deposit accounts for regulated digital asset and blockchain firms. ZA Bank is planning on offering token-to-fiat currency conversions over licensed exchanges as well as account services for the digital sector in Hong Kong too.

Crypto-Friendly Banks in Europe

In Europe Liechtenstein based Bank Frick & Co offers banking services as well as custody solutions for cryptocurrencies including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). Additionally institutions such as Falcon Private Bank also offer dedicated crypto asset management solutions allowing clients access their assets via mobile apps or web interfaces with ease.


The collapse of Silvergate and Signature Bank highlighted how fragile the current banking system is when it comes to cryptocurrency companies – leading many to turn towards smaller regional banks or alternative payment service providers for their financial needs instead of relying on traditional large scale banking organisations alone.