Binance.US struggles to find a new banking partner following the collapse of Signature Bank
Is Binance.US in trouble and why are banks not interested in doing business with the exchange? According to a weekend report from the Wall Street Journal, the U.S. arm of crypto exchange Binance is facing challenges in finding a new banking partner following the collapse of Signature Bank that roiled the crypto market in March.
The Journal reported on Saturday that Binance.US is struggling to find a bank to take its customers’ cash after the failure of Signature Bank. Citing people familiar with the matter, the publication reported that Binance.US is now using at least one intermediary to store funds as a stopgap. The report also added that since the money is being held by a third party, it can slow down sending and moving of funds.
“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 spokesperson for Binance.US told the WSJ.
The U.S. affiliate of global crypto exchange Binance has struggled to find a bank for its customers’ cash after the failure of Signature Bank left it without a key banking partner, people familiar with the matter said.
On March 12, 2023, the New York State Department of Financial Services shut down Signature Bank and the Federal Deposit Insurance Corporation (FDIC) was named Receiver, according to a news release by the FDIC.
In addition, according to Binance.US’s website, users’ dollar deposits were previously sent to either Signature Bank or Silvergate Capital Corp. before the collapse of the two banks, which has now left many crypto companies looking to find new banking partners.
We covered Binance.US last year after the US arm of Binance raised over $200 million in seed funding at a $4.5 billion valuation. It was the company’s first external funding that included backers from RRE Ventures, Foundation Capital, Original Capital, VanEck, and Circle Ventures, among others, as well as firms focused on diversity, equity, and inclusion, such as Gaingels and Gold House.
Launched in 2019, Binance.US is one of the largest digital asset exchanges by trading volume in the United States and ranks among the top exchanges by volume globally, offering some of the lowest fees on the market for new and experienced retail and institutional traders alike. Binance.US offers a sophisticated user interface and innovative trading features, with the ability to process 1.4 million orders per second, all while maintaining robust compliance and security structures. Today, there are more than 85 tokens and 190 trading pairs available on Binance.US.
Binance.US is America’s home to buy, trade, and earn digital assets. Ranked by Forbes as Best Overall Crypto Exchange for 2021 and 2022. Binance.US offers some of the lowest fees in the industry and provides secure and reliable access to more than 85 of the world’s most popular cryptocurrencies.