According to the news of the Wall Street Journal, based on its own sources, Binance's US branch, Binance US, said that after Signature Bank's bankruptcy, it was difficult for its customers to find a bank for their cash.
According to Binance.US's website, users' dollar deposits were previously sent to Signature Bank or Silvergate Capital. The bankruptcies of Signature and Silvergate, both seen as friendly to crypto companies, have caused many crypto firms to compete to find new banking partners.
Binance.US's Difficulty Finding Partners May Slow Funding, WSJ Sources Say
As a workaround, Binance.US uses at least one brokerage firm to store funds on its behalf. Sources said that because the money is held in intermediary banks, it could slow down the process of sending and moving funds.
Kaynakar said Binance.US has sought to establish direct banking relationships with several banks in recent months, including Cross River Bank, a New Jersey-based credit institution that serves some crypto and fintech firms, and Customers Bancorp, a Pennsylvania-based regional bank.
A Binance.US spokesperson said: "We work with multiple US-based banking and payment providers and continue to recruit new partners as we refine our internal systems to build a more stable fiat platform and provide additional services."
Sources said concerns over regulatory risk were among the reasons why some banks were reluctant to do business with Binance.US.
While some banks have accepted crypto customers following the Silvergate and Signature collapses, bank officials say they are picky about which customers they accept.
*Not investment advice.
