Crypto companies need banks to operate—but finding one is getting a lot harder.
During the crypto boom of recent years, a number of small banks looked past potential risks to embrace the fast-growing crypto industry. Now, following the implosion of FTX, top crypto-friendly bank Silvergate Bank is struggling to stay afloat and Signature Bank is cutting back on working with crypto customers.
That means crypto companies, whose customers need a bank account to wire money to, are scrambling to move money to banks that will still take them. Among the top possibilities are Silicon Valley Bank, Customers Bank and banking startup Mercury, venture capital investors and crypto executives told The Information. But finding a new bank is proving particularly difficult for newer startups without existing relationships.