Banks in the US Don’t Want to Cooperate With Binance

April 8, 2023

MCP News Free

Banks in the US Don’t Want to Cooperate With Binance

The US subsidiary of Binance, the world’s largest cryptocurrency exchange, has been struggling to find banking partners in the US since the banking crisis began, WSJ reports, citing people with knowledge of the matter.

Prior to the current banking crisis, customers who deposit US dollars usually deposit through either Silvergate Capital Corp. or Signature Bank, the current crisis faced by the above-mentioned pro-crypto banks has led to many US-based crypto firms including Binance.US to finding a new banking partner, and thus far, finding a new banking partner seemed to be difficult.

The US arm of Binance has so far attempted to partner with Cross River Bank and Customers Bancorp to assist in holding its clients’ US dollars but all attempts have failed so far.

The lack of a direct bank may be the reason behind Binance.US’ recent status update that it “was transitioning to new banking and payment service providers over the next several weeks,” furthering that some USD deposit services would be affected temporarily while the transition is ongoing.

Currently, Binance.US is holding its clients’ funds using a financial technology firm called Prime Trust, meanwhile, a Prime Trust spokesperson said that all funds received are stored using banking partners.

“We work with multiple U.S.-based banking and payment providers and continue to onboard new partners while upgrading our internal systems to create a more stable fiat platform and offer additional services,” a spokesman for Binance.US told the WSJ.

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