The collapse of some major crypto banks has caused widespread outages in the banking sector. However, some major banks are ready to explore new partnerships with crypto-friendly banks.
In recent weeks we have witnessed that banks are parting their ways with crypto-friendly banks due to risk and uncertainties associated with it. The collapse of three major banks in the United States namely Silvergate bank, the Silicon Valley Bank, and the Signature bank has raised serious questions about the future of these banks.
According to recent reports, the Digital Currency Group (DCG) is currently looking forward to finding new partners for portfolio companies. Major firms like Santander, the Hong Kong and Shanghai Bank Corporation (HSBC), and the Deutsche Bank are in a race to find new crypto firms.
The collapses left the crypto firms in a strange condition where it’s very difficult for them to decide about their future. For those who are not aware of the fact that the Digital Currency Group works as a venture capital and provides services in the digital currency market.
The DCG has contacted various major players in this domain like JP Morgan (JP), BalckRock (BK), and Bank of America. The reports also say that some firms are ready to provide services to these crypto-friendly banks.
However, banks may restrict a few functions as compared to traditional companies. Services like brokerage and money market services and the ability to wire money to third parties may be restricted.
The restrictions will prevent any future loss to these firms. This news comes as good news for crypto users who are upset because of the current volatile market. The DCG decision will surely help in regaining the trust of users. However, some banks are still opening accounts for crypto firms like Western Alliances and Bridge Bank.