The Great Crypto Re-Banking Has Begun
For crypto firms, the vibe-shift is a blessing. Although they have comparatively few problems accessing overseas bank accounts—often in the Cayman Islands or Switzerland—in lieu of a US bank account, they are often unable to earn yield on deposits or transact seamlessly with US-based counterparties, and sometimes incur high account fees. Neither do they benefit from deposit insurance under the US Federal Deposit Insurance Corporation, which guarantees up to $250,000 per account holder.
Though some of the big-name banks, like JP Morgan, are trialling crypto technologies for internal use, many remain reluctant to supply accounts to crypto businesses, sources say. “The banks that John Doe has heard of have nothing to do with…
