Circle Partners With Cross River Bank, Handful Of “Crypto-Friendly” US Banks Remain; Okcoin Suspends USD Deposits –
Circle Financial, the issuer of the stablecoin USDC, according to a statement from CEO Jeremy Allaire, is working with Cross River Bank after its former settlement partner Signature Bank was shut down by New York regulators. “Having 1:1 redeemability for all USDC in circulation is of paramount importance to Circle,” Allaire said.
Crypto firms are courting new banking partners in the United States
Circle Financial has announced a new banking partner following the depegging of its stablecoin, usd coin (USDC), from the US dollar over the weekend. CEO Jeremy Allaire called in a statement Sunday night that more than $3 billion in funds previously held at Silicon Valley Bank (SVB) would now be accessible thanks to the federal bailout announced by the US Federal Reserve and Treasury Departments. USDC regained or came very close to parity with the US dollar about 45 minutes after the Federal Reserve announced that all depositors from SVB and Signature Bank would be made full.
The announcement by Circle CEO Jeremy Allaire says the company is working with a new banking partner and that Circle’s USDC operations will open Monday morning with a new automated settlement through Cross River Bank. Despite the closures of Silvergate Bank, Silicon Valley Bank (SVB) and Signature Bank, some US crypto companies still have banking partners Larry Cermak, Head of Research and Data at The Block. He noted that there are only a small number of so-called crypto-friendly banks today.
Cermak a number of banks listed considered friendly to the crypto industry, including Customers Bank, First Foundation Bank, Sutton Bank, Evolve Bank & Trust, Bankprov, Quontic Bank, and Cross River Bank. There are rumours that Coinbase, a popular crypto exchange, also uses Cross River Bank as a banking partner. However, the situation hasn’t been smooth sailing for everyone, as Okcoin’s U.S. exchange has had to expose US dollar deposits and over-the-counter services due to issues with its former primary USD bank, Signature Bank. Okcoin President Hong Fang confirmed the suspension and stated that the exchange is working to find a new banking partner.
Okcoin has suspended US dollar ACH and remittances, but Okcoin President Hong Fang has reassured the public that “all company and customer funds are safe.” The scramble for new banking partners by crypto companies comes after the Federal Deposit Insurance Corporation (FDIC) turned Signature Bank and Silicon Valley Bank (SVB) into bridge banks. On Monday morning, US President Joe Biden assured the nation that America’s “banking system is safe” and that “your deposits will be there when you need them.”
Meanwhile, reports said trading halted for several US banks when shares opened on Monday.
What do you think the future holds for cryptocurrency companies and their banking partnerships in the ever-evolving financial landscape? Do share your thoughts in the comment section below.
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Source: Crypto News Deutsch
