Digital Currency Group Searches For A Lifeline As SVB And Crypto-Friendly Banks Collapse

Prominent crypto conglomerate Digital Currency Group (DCG) is seeking to secure new banking partners for its portfolio companies in the aftermath of the recent collapses of Silicon Valley Bank (NASDAQ: SIVB), Signature Bank, and Silvergate Capital Corp (NYSE: SI).

Coindesk reported that several banks, including Santander (NYSE: SAN), HSBC (NYSE: HSBC), Deutsche Bank (NYSE: DB), BankProv, Bridge Bank, Mercury, Multis, and Series Financial, are eager to forge links with crypto firms.

To expand its options, DCG has also approached BlackRock (NYSE: BLK), JPMorgan (NYSE: JPM), and Bank of America (NYSE: BAC) for banking support.

The report states that while traditional banks are willing to set up banking accounts for cryptocurrency firms, they may impose some restrictions, such as limiting certain services like brokerage and money market services, as well as wire transfers to third parties, based on the level of exposure to crypto assets.

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DCG is also exploring international banking partnerships with entities such as Revolut in the U.K., United Overseas Bank (UOB) in Singapore, and Bank Leumi in Israel.

In response to the situation, a DCG representative will meet with Senate Banking Committee staff to discuss the fallout from SVB, Signature, and Silvergate.

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