US banking crisis spurs crypto firms to consider offshore relocation for stability

Several US cryptocurrency companies are seeking offshore bank accounts following the collapse of three digital assets-friendly financial institutions last week. Sygnum in Switzerland, Bank Frick in Lichtenstein, and SEBA in Switzerland have reported an increase in requests to open accounts from various jurisdictions, including the US Xapo Bank in Gibraltar has also seen an uptick in demand for new accounts and is adding GBP payment services with USDC options likely starting later this week.

Industry sources have suggested several options for US dollar-based banking, including FV Bank in Puerto Rico, Jewel Bank in Bermuda, and Tether and FTX-tied Deltec in the Bahamas. EQIBank in Dominica has also been identified as an option. However, these banks did not respond to CoinDesk’s request for comment.

Last week, regulators shut down three of the U.S.’s preferred banks for crypto. While Silicon Valley Bank has set up a bridge bank to allow customers to use their accounts in the short term, in the long term, companies will have to move their funds to other banks. The Federal Insurance Deposit Corporation, which manages the process, typically organizes bridge banks for up to two years, giving firms plenty of time to onboard with other banks.

Major cryptocurrencies are trading as follows as of 9 am IST, 15th March 2023:

Bitcoin: $25,089.95 USD

+1.38%

Ethereum: $1.732.20 USD

+1.36%

Tether: $1.02 USD

-0.17%

USD Coin: $1.00 USD

+0.02%

BNB: $313.16 USD

+1.01%

XRP: $0.3789 USD

+0.74%

Dogecoin: $0.07656 USD

+3.54%

Cardano: $0.3476 USD

+0.39%

Polygon: $1.22 USD

+1.79%

Polkadot: $6.40 USD

+2.73%

Tron: $0.06723 USD

-0.27%

Litecoin: $85.63 USD

+4.07%

Shibu Inu: $0.00001155 USD

+2.06%

ALSO READ: CryptoQuant CEO reveals $1 Billion buying pressure on BTC, ETH, BNB

Latest Business News