Which bank to manage Binance’s cash in the US?

Binance has conquered an important market share at USat the expense of Coinbase. Binance US would nevertheless be confronted with difficulties : find a bank to manage the deposits of its customers.

U.S. crypto industry has recently lost significant banking partners. Signature Bank and Silvergate were essential to these players in managing their day-to-day operations.

Circle, for example, deposited a portion of its stablecoin cash reserves with Silicon Valley Bank. But the issuer is not the only one to have been impacted by this banking crisis. Binance US also meets with difficultiesaccording to the WSJ.

Desperately seeking a new bank ?

The independent subsidiary of the crypto exchange had until last month Signature Bank as a banking partner. Binance.us deposited the cash of its American customers there. Since the bankruptcy of the institution, the crypto actor would assiduously seek another bank.

To keep the funds, the exchange would temporarily call on at least one third party. This would result in a slowdown in transactions, reports the Wall Street Journal. For reasons of quality of service on its platform, Binance would therefore need a new bank.

These would not be rushed, however. The banks would be reluctant to accept this clientele for regulatory reasons.

Binance to conquer the American market

Cross River Bank and Customers Bancorp would have refused Binance as a customer. The crypto exchange downplays.

We work with many U.S.-based banking and payment service providers and continue to integrate new partners while upgrading our internal systems to create a more stable fiat platform and offer additional services,” a spokesperson said.

Could these difficulties, which have yet to be confirmed, be explained by the recent complaint filed by the CFTC against Binance and its CEO? The case is against the parent company, not its U.S. branch.

And unlike its main competitors, Kraken and Coinbase, Binance.US is doing well in this market. The exchange has so far been spared by the authorities. The platform has tripled its market share from only 8% to over 24%.

Follow Corners.en on Twitter, Linkedin, Facebook or Telegram to not miss anything.