Binance battles to find place for customers’ cash

FILE PHOTO: Binance logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration

NEW YORK: The US arm of cryptocurrency exchange Binance is struggling to find a bank to handle its customers’ cash after the failure of Signature Bank last month

Previously, the deposits were sent to either Signature Bank or Silvergate Capital Corp, both seen as crypto-friendly banks. However, after both failed, the exchange is rushing to find a new banking partner, according to The Wall Street Journal (WSJ), citing people familiar with the matter.

Binance.US is using at least one intermediary to store funds, the WSJ said, adding that since the money is being held by a third party, it can slow down sending and moving funds.

The company has unsuccessfully tried to establish relationships with Cross River Bank and Customers Bancorp Inc, the report said, adding that banks are reluctant due to concerns over regulatory risk.

All three companies did not immediately respond to a Reuters’ request for comment outside normal business hours.

“We work with multiple US-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 spokesperson for Binance.US told the WSJ. — Reuters