Crypto-friendly banks are financial institutions that offer services to cryptocurrency-related businesses, including exchanges, traders, and investors.
The demand for such banks has increased recently as cryptocurrencies have gained mainstream acceptance. However, the recent crashes of Silvergate and Silicon Valley Banks in early 2023 have raised concerns among the crypto community about the availability of such banks.
Silvergate Bank is one of the leading banks in the cryptocurrency industry, providing services to many major exchanges and companies in the Web3 space. However, in early 2022, the bank suffered a major outage that lasted several days, leaving many of its clients unable to access their funds or conduct transactions.
The incident led to widespread panic and raised questions about the reliability of crypto-friendly banks. Similarly, Silicon Valley Bank, a key player in the crypto industry, recently announced that it was shutting down its cryptocurrency banking division. This unexpected move left many of its clients scrambling to find alternative banking solutions.
Despite these setbacks, several US-based crypto-friendly banks are still available for cryptocurrency-related businesses. Here are some of the top options:
Kraken Bank
Kraken Bank is a digital bank launched by the popular cryptocurrency exchange Kraken. The bank offers various services to cryptocurrency-related businesses, including wire transfers, ACH transfers, and cryptocurrency custody. Kraken Bank is fully regulated and operates under the supervision of the Wyoming Division of Banking.
Signature Bank
Signature Bank is a New York-based bank that has been serving the cryptocurrency industry for several years. The bank offers diverse services to cryptocurrency-related businesses, including deposit accounts, wire transfers, and ACH transfers. Signature Bank is fully regulated and has a strong reputation for reliability and customer service.
UPDATE: On Sunday, March 12, 2023, New York-based Signature Bank, one of the top U.S. banks popular with Web3 and cryptocurrency companies, was closed by the Department of Financial Services of New York, leaving the crypto community wondering which bank might be next on the SEC and FDIC chopping block.
Metropolitan Commercial Bank
Metropolitan Commercial Bank is another New York-based bank serving cryptocurrency industry clients. The bank provides deposit accounts, wire transfers, and ACH transfers to cryptocurrency-related businesses. Metropolitan Commercial Bank is fully regulated and has been operating for over 30 years.
Silvergate Bank
Despite the recent outage, Silvergate Bank is still up and running and remains one of the leading banks in the cryptocurrency industry. The bank offers various services to cryptocurrency-related businesses, including deposit accounts, wire transfers, and ACH transfers. Silvergate Bank is fully regulated and has a strong reputation for reliability and customer service.
First Foundation Bank
First Foundation Bank is a California-based bank that has been serving the cryptocurrency industry for several years. The bank offers deposit accounts, wire transfers, and ACH transfers to cryptocurrency-related businesses. First Foundation Bank is fully regulated and has a strong reputation for reliability and customer service.
Conclusion
In conclusion, while the recent crashes of Silvergate and Silicon Valley Banks have raised concerns about the reliability of crypto-friendly banks, there are still plenty of options available for Web3 and cryptocurrency-related US business banking.
Kraken Bank, Signature Bank, Metropolitan Commercial Bank, Silvergate Bank, and First Foundation Bank are among the top choices for those looking for reliable banking solutions in the Web3 and cryptocurrency industries.
