Crypto founders are running out of bank options after the collapses of SVB and Signature. Here's where they're scrambling to move their money.
Even so, some founders, especially those already based outside the US, are now seeking to further mitigate their exposure to the US banking system. The European firm BCB Group and the Bermuda-based fintech company Jewel have begun to gain traction as crypto-friendly providers, several founders told Insider.
Alex Svanevik, the founder and CEO of Nansen, a Singapore-based blockchain data startup, said his company used to hold an account with Signature, but moved most of its funds to the Singaporean bank DBS prior to the bank's closure. Though now, he is also looking into adding an account with BNY Mellon and has been actively working on setting up more bank accounts to diversify counterparties.
But that's a difficult task, since crypto startups often need to carry out certain transactions, such as payroll, in dollars or other government-backed currencies. Those backed by US venture capital firms also need to set up bank accounts in the country in order to receive their funding. West, for instance, kept small amounts of Globe's funds in accounts at both Signature and Silicon Valley Bank.
told Insider they used fintech startup Mercury to access banking services for functions such as payroll and payments to companies that do not accept crypto. Ittai Svidler, the cofounder of Den alongside Erlich, said he's also seen more companies seek to take custody of their own crypto funds and minimize their reliance on third-party financial institutions.But even leaning on crypto for treasury management has its perils, as seen in the wake of SVB's collapse.
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