Some banks open doors for crypto firms after Silvergate, Signature downfalls - report
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The collapse of crypto-friendly lenders Silvergate Capital (SI) and Signature Bank has prompted a number of banks to extend welcomes to crypto-focused companies as they scramble for banking services, the Wall Street Journal reported Monday, citing people with knowledge of the shift.
Crypto executives told the newspaper that they have received a positive reception from some regional banks, including Customers Bancorp (NYSE:CUBI) and Fifth Third Bancorp (NASDAQ:FITB), both of which have seen their stocks crater in the past month as the banking turmoil that started with Silicon Valley Bank's demise on March 10 rattled confidence in the banking system.
“There are dozens of other banks, both onshore and offshore, that are taking advantage of" filling the vacuum, Rich Rosenblum, co-founder and president of crypto trading firm GSR, told the WSJ.
While deposit inflows from crypto firms could help bolster banks' balance sheets, regulators have increasingly voiced concerns about lenders' ties to crypto after the multibillion-dollar failure of crypto exchange FTX (FTT-USD).
Nonetheless, the loss of Silvergate (SI) and Signature's payment networks have spurred crypto firms to look for regional banks that either offer or are in the process of developing similar solutions, the people told the Journal, including Customers (CUBI) and Western Alliance Bancorporation (NYSE:WAL).