HSBC and other banks are still ready to work with cryptocurrencies

Santander, HSBC, Deutsche Bank, BankProv, Bridge Bank, Mercury, Multis and Series Financial banks remain ready to work with digital assets.

SCOOP: Some major banks like @bancosantander, @HSBC and @DeutscheBank are still willing to connect with crypto firms, but may restrict services, according to @DCGco. Reporting by @lavender_au.https://t.co/TRScgu4fd7

— CoinDesk (@CoinDesk) March 14, 2023

Crypto holding Digital Currency Group (DCG) is trying to find new partners for portfolio companies amid the problems of Silvergate Bank, Signature Bank and Silicon Valley Bank (SVB), according to documents seen by CoinDesk.

DCG has also reached out to BlackRock, JPMorgan and Bank of America, but does not appear to have received a satisfactory response. In addition, the holding sent requests to several international banks, including Revolut in the UK, United Overseas Bank in Singapore and Bank Leumi in Israel.

The documents note that financial institutions may block some services for crypto companies, such as brokerage services and the ability to transfer money to third parties. The degree of restrictions will depend on the level of vulnerability of firms.

March 10 California Department of Financial Protection and Innovation closed Silicon Valley Bank and appointed FDIC manager. The reason for this decision was “insufficient liquidity and insolvency.”

US regulators have said savers will have access to their deposits on March 13 at the expense of shareholders and some unsecured bond holders.

On March 11, amid the collapse of the SVB, the stablecoin USDC and algorithmic stablecoins DAI and FRAX lost their peg to the US dollar. The issuer of USD Coin, Circle, assured of solving problems with the banking support of the asset.

Recall that recently the founder of the Tron blockchain, Justin Sun, announced his readiness to support the creation of a “reliable bank” for the crypto sector.

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